Withdrawl of mutual funds
Hi All,
Can someone please advise if I invest in any mutual fund, how long do I have to wait before I can withdraw the investment?
I need information/names of companies which allow me to withdraw my money in one year after I invested it. Most enquiries i've made so far only give the option of withdrawing money after 3 years - which is of no use to me.
Thanks in advance,
You can withdraw (or redeem) your fund units, anytime you want. But remember that if you redeem your units within ONE year of investment than it will attract Short Term Capital Gain tax. It will be levied on the profit made by you in that fund since you invested.This tax is applicable only if you redeem within ONE year of investment in that fund.
All fund companies allow investors with withdraw there money anytime they want to EXCEPT if the investment is made in a TAX SAVING MUTUAL FUND(ELSS) or in a CLOSED ENDED MF.
IF YOU HAVE INVESTED IN A TAX SAVING MF THEN YOU CAN ONLY WITHDRAW AFTER 3YEARS FROM THE DATE OF INVESTMENT.
In order to get a Loan, you first need to prove that you don't need it.
You can redeem any time you want and it all depends on the fund you are buying, but the minimum period is six months, but you can redeem any time you like but you will have to end up paying some exit load....1%,2% it all depends on the fund you have.
And the three years lock in period you said that is only for ELSS(Equity Linked Saving Schemes) or tax saving scheme.
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