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Can I take my money out of a mutual fund at any time?

By Finserv MARKETS - Aug 1,2019
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Can I take my money out of a mutual fund at any time

A mutual fund is a sort of financial roadmap made up of a pool of money gathered from numerous investors. They are used to invest in bonds, for example, stocks and other money market instruments. Top mutual funds are worked by expert money administrators, who allocate the assets of the fund and look forward to delivering more profit for the investors. To do so, a portfolio is organised and kept up to match the investment goals for a particular plan and choose the best mutual funds.

Mutual funds give individual investors access to well-managed bond portfolios, equities, and other securities. Mutual funds invest in many bonds and other forms of securities. The performance of a MF is overseen by the market cap of the fund, which depends on the performance of the investment.

Can you withdraw from your top mutual funds?

You generally do not have to pay the penalty for pulling back from a fund invested through SIP mode, as SIP and withdrawal (reclamation) are two separate mandates. However, you may be charged with a leave burden for reclaiming your fund before the agreed period. If you have invested through SIP, each portion of it is treated as a new purchase.

Can I take my money out of a mutual fund at any time
Thus, the leave burden which is charged on the fund will depend on the holding period of every portion. For example, imagine you are investing Rs 1,000 from month to month SIP in a fund that charges an exit load of 1% for holding period under 1 year. Now, you need to pull back towards the end of 2 years. At that point investments made in the initial year won’t draw in the exit load.

Investments made following a year will draw in the 1% exit load. If you withdraw from a plan, it doesn’t mean that the SIP will be stopped. Your SIP portions will keep on buying new units, even as you pull back from the fund. Consequently, if you would prefer not to proceed with the SIP, at that point, you would need to independently demand its dropping.

Why invest in top mutual funds?

If you are a young investor who is looking forward to investing some money, then mutual funds could be your go-to investment. Here are some of the benefits of investing in a MF scheme:

1. Professional management: Mutual funds on Finserv MARKETS work by hiring professionals who are well aware of the market and are well-experienced with handling a large pool of money. They gather valuable insights and information on the market to give you the best out of your investments.

2. Low-cost investments: Mutual funds give you the option of investing in portfolios for as little as Rs 5,000 — often lesser.

3. Transparency: You receive regular updates on your MF investments, including the disclosure on the various kinds of investment made under your plan. With perfect transparency, you will have a good idea of how your funds are performing, so that you know what to invest in next.

How to apply for mutual fund investments

On Finserv MARKETS, it is quite easy to apply online and start investing in best mutual funds right away. All you have to do is choose your Direct Mutual Fund, provide the investment amount, complete your KYC, and proceed with the payment. Post that, the Finserv MARKETS team will take care of your portfolio and ensure you maximum returns on your investments.

On Finserv MARKETS, the beneficiary also gets to bypass the broker fee, and thus, eliminating intermediaries makes the whole process of operating funds more accessible and more convenient.

Conclusion

If you are a young investor who is looking for a best mutual funds run by professional investors who pick different instruments to invest for you, then Finserv MARKETS should be your one-stop destination. After you open your account, you also get detailed portfolio summaries and insights into how your investments are performing in the market. If you have any queries, you can get in touch with the support team which will address your questions immediately. You also get exclusive offers based on your risk profile and your investment goals, which makes it a walk in the park to invest in mutual funds.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no-cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522