How do I redeem my SIPs ELSS SIP?
For example, suppose you start a monthly SIP of Rs. 1000 ELSS Fund on 1st January 2018….Can I redeem my ELSS Investments in One Go?
| Date of SIP Investment | Date After Which Investment Can be Redeemed |
|---|---|
| 1st Feb 2018 | 2nd Feb 2021 |
| 1st Mar 2018 | 2nd Mar 2021 |
| 1st Apr 2018 | 2nd Apr 2021 |
| 1st May 2018 | 2nd May 2021 |
How does SIP redemption work?
If you hired an agent to invest in SIPs, contact the same agent to redeem it. He/she will fill up a redemption request with details regarding your SIP, including the number of units that you want to redeem. After the request has been processed, you will receive the due amount via NEFT or a cheque.
How does SIP work in ELSS?
On the other hand, SIPs allow individuals to invest by gradually transferring a fixed amount to the fund of one’s choice. One does not have to pay a significant amount towards their investment in ELSS, ensuring minimal financial strain. The money also gets a fixed return in the debt funds.
How much time does it take to redeem sip?
How long will you take to receive your fund redemption amount? When you redeem your mutual fund, you will typically receive your unit’s funds within 1 to 5 working days. If you redeem a debt-related fund or a liquid fund, you will get your money within 1 to 2 working days.
Which NAV is applicable for redemption?
The Applicable NAV for redemptions continues to be as follows: Where the redemption transaction is received on any Business Day at the official points of acceptance of transactions upto 3.00 p.m. NAV of the same Business Day shall be applicable.
Is SIP redemption taxable?
If the long-term capital gains are less than Rs 1 lakh, then you don’t have to pay any tax. However, you make short-term capital gains on the units purchased through the SIPs from the second month onwards. These gains are taxed at a flat rate of 15\% irrespective of your income tax slab.
Does SIP come under ELSS?
ELSS is an investment vehicle in itself while SIP is not, it is instead a way of investing not only in ELSS but also in any other mutual fund.
How is SIP different from mutual fund?
By buying mutual funds you can get the benefit of diversification with the same investment and thus reduce your risk. The SIP, on the other hand, is just a method of investing in a mutual fund. You can either reinvest in mutual fund as a lump sum or as a SIP. The SIP stands for Systematic Investment Planning.
How to invest in ELSS through SIP?
A Systematic Investment Plan or SIP allows you to buy ELSS fund units by investing smaller amounts at regular intervals. You choose the amount and the interval at which you want to invest in the fund. Once you set up the debit mandate with your bank, the SIP starts working automatically and units are purchased at the NAV on the date of debit.
What is the lock-in period in an ELSS fund?
The lock-in period in an ELSS fund applies to the units of the fund purchased by you. You can withdraw your investments when these units complete three years of staying invested. Let’s look at how this works with the help of an example:
What is the time limit to redeem ELSS investments?
Investments in equity-linked saving schemes ( ELSS) cannot be redeemed before the end of three years from the date of investment. This applies even if the investor does not claim tax benefits under Section 80C of the IT Act. At the end of the three-year period, there is no compulsion to redeem the investment.
Is an ELSS just a tax-saving option?
It is not just a tax-saving option. The only difference between an ELSS and other equity schemes is the presence of a lock-in period. While most experts recommend investing in equity for the long-term (7-10 years), the lock-in should not make a difference to the way you treat your investment.