Once you have decided to withdraw your money from the mutual funds, you need to know how to withdraw money from mutual funds. How to withdraw money from mutual funds The main purpose of investing in mutual funds is to earn returns on your investment. When you invest in mutual funds Cheap Deion Sanders Jersey , there is a time horizon for which you have invested, which is entirely at your discretion. In some cases, there is a lock-in period during which you cannot liquidate your investment. After the lock-in period has expired, it is entirely at your discretion as to when you wish to liquidate your investment and withdraw money from the mutual funds. There are two approaches for withdrawing your money from the mutual fund. They are as follows:
Systematic Withdrawal Plan (SWP): If you are looking for a steady flow of income from your investment while remaining invested in the scheme Cheap Matt Williams Jersey , the SWP is what you are looking for.
Are you wondering what is an SWP? Well, with SWP, you can fix a certain amount that would be withdrawn from your mutual fund account to your bank account on a given date or at a given interval, which is usually monthly or quarterly. The said money can be used to meet your financial needs while your investment continues to earn returns for you. It is essentially a phased method to withdraw your money from the mutual fund. This option is useful when your portfolio consists majorly of equity funds and as the requirement date approaches Cheap Mel Ott Jersey , you wish to reduce the risk on your investment by withdrawing the money and reinvesting it in debt securities or saving it in your savings account.
Redemption of Units: If you are certain about redeeming your investment entirely, then the process is very straightforward. But you can do so only after the lock-in period has been completed.
Login to your Mutual Fund account. Browse the 鈥淥nline Transaction鈥?page Select the respective scheme and number of units you wish to redeem Confirm your transaction. It usually takes 24-72 working hours for the money to be credited to your savings bank account.
Withdrawal of money from mutual funds should only be done when it is absolutely the last possible option, because you are otherwise giving away the opportunity to grow your money and create a corpus for your future requirements.
Total Views: 67Word Count: 632See All articles From Author A Demat account allows investors to hold their shares in the market in an electronic form. If you are looking forward to investing in shares, then you will have to understand the concept of demat and demat accounts. Investment in securities is considered one of the best ways to grow and increase your wealth Cheap Madison Bumgarner Jersey , with just a little bit of smart effort. However, if you are still feeling unsure about opening Demat trading account, read here to know the benefits of one-
鈥?Decrease in expenses- In case of securities, your demat account will not need a stamp duty Cheap Brandon Crawford Jersey , which results in a substantial amount of cost reduction. Previously, the stamp duty was 0.5% for every stock you purchase and you would have to visit the stock exchange in order to share your transfer stamps. This made the whole process a very complicated one. Now you can avoid this charge by having demat trading account of your own.
鈥?Risks associated with delivery- One of the best benefits of a demat account is zero delivery risks. Since there is no paperwork involved, the risk of fake shares, theft Cheap Buster Posey Jersey , and wrong deliveries in the electronic trading process are eliminated. This type of a system generally credits your demat account automatically, irrespective of the type and number of shares. The same process applies to other stock transactions as well, such as stock bonuses and stock splits.
鈥?Updates are automatic- When it comes to demat accounts updates are automatic in nature. You will not have to provide your details every time you deal with a company, despite having a common account for all your securities transactions. Your demat account will have all the relevant and necessary information related to the transaction.
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