Hi, I have invested in a mutual fund through Coin in SIP mode (ELSS plan) as there is a lock in period of three years.
How to withdraw it ?can it be single lump sum withdrawal or can it be Systematic withdrawal plan.
Kindly clarify.
For ELSS/Tax savings fund the lock-in of 3 years is calculated from each date of allotment.
If SIP(monthly) has started on 1st April 2017 for a period of 12 months with a monthly installment of Rs 1000 and if the allotted units every month is 100 then the total number units at the end of 12 months (March 2018) would be 1200.
Suppose, you wish to redeem the units, then the redemption would work in the following ways :
100 units allotted in April 2017 can only be redeemed in April 2020. But, remaining 1100 units cannot be redeemed as the lock-in period is not over.
100 units allotted in May 2017 can only be redeemed in May 2020. If you have not redeemed the 100 units in April 2020, then you can redeem redeem 200 units in May 2020.
100 units allotted in June 2017 can only be redeemed in June 2020. If you have not redeemed the 100 units in April and 100 units May, then you can redeem totally 300 units in June 2020
If you wish to do a complete redemption of 1200 units then you would have to wait till March 2021.
So, you can redeem the units in different ways provided that each allotment of the units have completed the 3 year lock - in period.
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Hi i highly appreciate your reply, can you name the best or few mutual funds available in coin with SWP.
I want to invest in Mutual funds for the next three years and after that, i need SWP mode of redemption.