Query regarding partial redemption of Mutual Funds

POSTED BY sachinvlk ON March 28, 2014 1:24 pm COMMENTS (6)

Hello All,

I am new to Investing and have following query. Suppose I have been investing in ABC MF for last 3 years via a regular SIP of 1000/-. Now after 3 years I have stopped my SIP and want to withdraw only that much Amount which has been invested in first 2 years. I don\’t want to withdraw the amount of my 3rd year because I want to avoid the TAX on that amount.

Is this kind of redemption is possible. And If yes what is the procedure.

Thank you.

6 replies on this article “Query regarding partial redemption of Mutual Funds”

  1. sandeep says:

    I am havington a SIP since last 11 month and is going on. If I want to do partial redemption can I do?

    1. You can do that if the fund is not a closed one or an ELSS !

  2. Ashish Garg says:

    Hi Sachin,

    If you are happy with returns and want to redeem partially, you can do so. You just have to inform the AMC about number of units (equivalent to purchased in first 2 years) to be redeemed and same can be processed.

    Ashish

    1. sachinvlk says:

      Thanks Ashish.

  3. Hemanth Chandra says:

    Dear sachinvlk,

    At the time of redemption, there will be two options as partial, full.

    In you case, you can partial. Also, the redemption of units will be as ‘First In-First Out’ process. So, there will not be any tax for the money invested in 1st 2 years after the 3rd year only if the fund is an equity fund.

    Let me know incase of any clarification.

    Regards,
    Hemanth.

    1. sachinvlk says:

      Thanks Hemant.

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