Do you invest in Mutual Funds? Ever thought of prematurely withdrawing money from mutual funds for need? Then you should know these rules, otherwise you may have to bear long losses.
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mutual fund schemes (Mutual Fund Schemes) has increased in recent years. It is being liked more especially among the people of Tier-2 and Tier-3 cities. Due to high risk on direct investment in stock market, people prefer mutual funds (Invest in Mutual Fund) Express more confidence in investing through. In such a situation, if you are planning to withdraw money from mutual funds before time or maturity, then this news is for you.
premature withdrawal from mutual funds (Withdrawal money from mutual fund before lock-in period ended) Money can be withdrawn, but this is not applicable to all types of mutual funds. There are also some mutual funds where you may have to pay a fine or penalty for withdrawing money from time or lock-in period.
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From which mutual funds can I withdraw money?
Most mutual fund schemes are open ended. Investment can be withdrawn at any time from open ended mutual fund schemes. Withdrawals can be made in parts instead of the entire investment. On this, according to your scheme, you just have to pay the exit load, which is generally very less.
There is another Equity Linked Savings Scheme (ELSS) Mutual Fund Schemes. You also get tax exemption on these schemes under Section-80C of Income Tax. That’s why there is a ‘lock in period’ of three years on these schemes. In such a situation, whenever money is withdrawn from these schemes before time, then penalty has to be paid. It can be between 5 to 10 percent.
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How to withdraw money from mutual fund?
There are many ways to withdraw money from mutual funds. Whenever you plan to withdraw money from an open ended mutual fund scheme, usually the minimum units that can be redeemed are reflected in your scheme document.
Investments in mutual funds can be redeemed at the Investor Service Centers of the scheme offering companies, at the offices of asset management companies, through demat accounts or through online platforms.
