ways to redeem mutual fund?



i read in a mutual fund article that when one wants to redeem his mutual fund amount, to get the tax benefit there should be a gap of 1 year between last SIP debit date and redumption date. Can we reddem the entire amount ? what are the ways like SWP or any other way is there?

ways to redeem mutual fund?
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2 Replies to “ways to redeem mutual fund?”

  1. Yes you can redeem the entire amount of your mutual fund directly from the fund sponsor or issuer. The definition of a mutual fund is a fund that continues to offer shares to the public and will redeem your shares at any time.


  2. Yes, you got it right as each sip has to complete one year to avoid short term capital gains.
    Now what is short term capital gains and long term capital gains

    The period of holding a capital asset, from date of its purchase to the date of its sale, determines whether a particular capital asset is a long-term or a short-term capital asset.

    Short Term Capital Gain arises when an asset is held for less than a year and then sold. Long Term Capital Gain arises when a unit of a mutual fund is held for more than 12 months.

    For complete details refer this what is tax implication on sale of mutual fund units
    http://mutual-funds-personalfin.blogspot.in/2012/05/income-tax-rates-for-2012-13-tax.html

    Can we reddem the entire amount ? what are the ways like SWP or any other way is there?

    If you want to avoid STCG then redeem those units which had completed one year or you can use swp option to avoid STCG.





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