Just wanted to get a bit clarity on how to redeem the mutual fund units in coin.
For example lets consider a mutual fund A. As per the data from moneycontrol.com or the fund A’s documents, there isn’t any exit load applicable to this MF scheme. But when we invest via coin there is an exit load/lock in period of 1 year. Is this lock in period set by coin? I assume Yes.
2nd question, If I invested 1000 rs to buy 10 units of A on Jan 1 2017. I invested 1000rs to purchase another 10 units on Feb 1 2017. Assuming the lock in period as 1 year, my question is -
Will I be able to redeem 20 units on Jan 2 2018? Or would it be 10 units on Jan 2 2018 and the next 10 in feb 2018. Hope my question is clear. Please comment.
The exit load is decided by the AMC managing the fund and it will be mentioned in the MF scheme related document. The rule of thumb for exit load is it’s 1% if MF exited within 365 days but this could vary. This is not decided by Coin. Coin is a transacting platform only. Charges are deducted by the AMC.
10 units on 2 Jan 2018 and 10 units on 2 Feb 2018 are when you can redeem them. 365 days from each SIP date if the MF has a lock-in period.