POSTED BY October 25, 2010 1:07 pm COMMENTS (3)ON
Would appreciate if you answer this one for me… excuse me if its’ an easy one.
I invested in HDFC Prudence – Growth in June 2009 with a monthly SIP of Rs.1000. Only recently, I increased it to Rs.2000/mth. My total Investment is Rs.19000.00 till date.
a. Should I keep this monthly contribution on? or Should I stop contributing and stay invested? I started my investment with a long term prospective.
b. I have an ambiguity about exiting the mutual fund. MFsays that there is an exit load applicable if its less than a year & at any given point of time(while you are contrbuting) the age of the recent investment does not go beyond 30 days. Do they consider the First allotment as the age of investment?
c. In this case, if I exit now, what is the amount that I would finally get, considering all the charges involved viz exit load & STT etc. Can you give me a calculation?
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3 replies on this article “SIP – Staying Invested!”
Thanks for your reply..
My first purchase was on June 4,2009 & subsequent purchases are made on 25th of every month.
From Aug 2010, I increased from Rs1000 to Rs.2000/mth. Due to transition, missed the contribution for Jul 2010.
Apart from this, I have SIP investment in Reliance Growth – Growth & SBI MSFU Contra – Growth for Rs.1000 each, started on June 4,2009.
Please advise as per my question a above.
Thx…. Certainly, its a balanced fund & would provide cushion…
HDFC Prudence is one of the best Mutual Funds you can invest in right now. Only if you need money in short-term, consider redeeming it. If your horizon continues to be longer-term, I fail to understand why would you not increase your SIP to 3,000 (assuming you can save 1k more every month)!
On your specific question, since you haven’t mentioned dates of SIP as well as when you increased to 2k a month, its not possible to give you an exact answer for anyone.
However, including all charges – load & STT as well as Short-term capital gains tax, your net cost to exit the fund shouldn’t be beyond Rs. 600 to Rs. 650 (approx.)
FYI – every installment in a SIP is considered as a new investment. So for the Rs. 1000 you invested between June 2009 & September 2009, you will not be liable to pay exit load.
Hope this helps!
@Manish, Moreover since it is a balanced fund it will act as a cushion in troubled times.