Investing in Systematic Investment Plans (SIPs) is one of the convenient ways to grow your wealth. You can safely accumulate your money for multiple goals and time horizons. However, to truly enjoy the benefits, it’s important to be consistent in your investments and ensure that you only withdraw SIP amount near your goals. In this guide on "how to withdraw SIP amount," we'll take you through a step-by-step process of withdrawing your SIP amount seamlessly.
- Withdrawing SIP Amount: Considerations & Process Involved
- SIP Withdrawal Process
- Conclusion
Topics Covered:
Withdrawing SIP Amount: Considerations & Process Involved
Methods to Withdraw SIPs
First up, you can easily withdraw your SIP amount hassle free online. You have multiple options, such as:
Utilizing a Broker or Distributor
If you are investing in mutual funds through a broker or distributor, the withdrawal process becomes relatively straightforward. All you need to do is reach out to your broker or distributor and share details such as your folio number, scheme name and investment amount for redemption. They will guide you through the withdrawal process and provide you with the necessary forms. These forms typically require personal information and investment details, ensuring a smooth and efficient withdrawal.
Online Using Trading & DEMAT Accounts
Investors who use a demat account to manage their investments can directly initiate the withdrawal process. Log in to your trading account, locate the section displaying your mutual fund holdings, and identify the specific SIP investment you want to withdraw, adhering to the principles of "how to withdraw SIP amount." Follow the platform's instructions, specifying the withdrawal amount and providing any further details as required. The trading platform will facilitate the withdrawal process and transfer the funds seamlessly to your designated bank account.
Using the Asset Management Company (AMC)
In case you have invested in MFs directly, visit the AMC's website or contact their customer service helpline to understand the withdrawal process. Share your investment details, including your folio number and scheme name. The AMC may require you to complete a withdrawal form, which can also be found on their website or obtained from their office. Complete the form with the necessary information and specify the withdrawal amount.
The Assistance of Registrar and Transfer Agents (RTAs)
Mutual funds often employ Registrar and Transfer Agents (RTAs) to handle administrative tasks, including withdrawals. Contact the RTA associated with your mutual fund investment for assistance. Obtain their contact information from the mutual fund's website or customer service. Reach out to the RTA via their helpline or visit their office to understand the withdrawal procedure. Provide them with your investment details, such as your folio number and scheme name. The RTA will guide you through the necessary steps and provide any required withdrawal forms.
Things to consider
Before redeeming or withdrawing your SIPs, you must consider following points:
Confirm SIP Lock-in Period
Before beginning the SIP withdrawal process, it is important to ensure that there is no lock-in period associated with your mutual fund investment plan. Some funds, such as ELSS (Understand how to plan your ELSS Investments), have a specific duration during which withdrawals are not allowed. Check the terms and conditions or consult the customer support of your broker for assistance in understanding how to do your ELSS investments during the year? - Religare Broking
Consult Your Financial Advisor
Prior to initiating a withdrawal, another modest pre step is to discuss your financial goals and reasons for withdrawal with your financial advisor. They can provide personalized advice and help you make informed decisions.
The Exit Load
It is important to make sure there is no exit load attached on the SIP scheme when you opt for withdrawal. Exit load is basically a nominal fee levied for a certain time on withdrawals. Generally there is no exit load on SIPs after 1 year. You must protect your portfolio's returns by ensuring ‘redemption request’ is only initiated after the expiration of the exit load period.
SIP Withdrawal Process
Log in to your account
Access your account through the official website or mobile app of the broker’s platform or the mutual fund.Use your login credentials to enter the platform.
Navigate to withdrawal Section
Once inside your account, find and navigate to the withdrawal or redemption section. Most brokerages typically provide a user-friendly interface, making it easy to locate this option.
Input withdrawal details
Enter the necessary details for the withdrawal such as withdrawal amount and the designated bank account for the funds. Double-check all information for accuracy.
Select withdrawal mode
Choose your preferred mode of withdrawal. You may get options such as Electronic Funds Transfer, direct bank transfer, or cheque. Select the mode that suits your preferences.
Confirm and submit
Review the withdrawal details before confirming your request. Once satisfied, submit your withdrawal request. Your broking platform will provide a confirmation message or email acknowledging your request.
Recommended Read: Benefits of Investment in SIP
Monitor bank account
Keep a close eye on your designated bank account for the credited amount. While processing times can vary, you can expect the funds to reflect in your account within a specific timeframe. In case of any delays or issues, reach out to customer support for assistance.
Conclusion
Withdrawing funds from your SIP is a straightforward process. Follow the above steps and make sure you are following the advice of your financial advisor. Be aware of the lock-in period, and choose the withdrawal mode that aligns with your preferences. By navigating the investment platform efficiently, you can manage your SIP withdrawals with ease, ensuring a smooth and hassle-free experience.
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