Hello Sir,
I'll be starting investments into Mutual funds through SIPs from next year and do have certain plans as to how to go about it. But before that, I need to confirm that these things are technically possible. So, kindly go through below description and let me know if there are any technical errors in my assumption of how MFs work.
So, I'll be opening an investment account with my bank that will allow me to invest into MFs online through SIPs.
I know that for each fund house, you have to go personally to bank for first new fund and thereafter you can start investing online. I have already started formalities for my KYC.
So, lets say I select 3 different MFs and want to start SIP in them. So, I go to bank and start SIP for each of them.
My questions start from below:
- Suppose I declare the SIP for 7 years, can I start redeeming partially after completing 3 years for SIP. SIP will continue until 7 years. But I want to start redeeming few units each year starting from 4th year. Let's say few unit in 4th, few more in 5th and few more in 6th. all while SIP investment is continued till 7 years. - Can this be done?
- Once SIP for 7 years is complete, I do wish to continue with MFs for 4 or 5 more years with remaining units without any additional investments. - Is it possible to stop SIP and stay invested?
How to calculate tax for MFs investments and redemption. Can somebody give some examples?
Thank you in advance.
Regards
vrushal2
I'll be starting investments into Mutual funds through SIPs from next year and do have certain plans as to how to go about it. But before that, I need to confirm that these things are technically possible. So, kindly go through below description and let me know if there are any technical errors in my assumption of how MFs work.
So, I'll be opening an investment account with my bank that will allow me to invest into MFs online through SIPs.
I know that for each fund house, you have to go personally to bank for first new fund and thereafter you can start investing online. I have already started formalities for my KYC.
So, lets say I select 3 different MFs and want to start SIP in them. So, I go to bank and start SIP for each of them.
My questions start from below:
- Suppose I declare the SIP for 7 years, can I start redeeming partially after completing 3 years for SIP. SIP will continue until 7 years. But I want to start redeeming few units each year starting from 4th year. Let's say few unit in 4th, few more in 5th and few more in 6th. all while SIP investment is continued till 7 years. - Can this be done?
- Once SIP for 7 years is complete, I do wish to continue with MFs for 4 or 5 more years with remaining units without any additional investments. - Is it possible to stop SIP and stay invested?
How to calculate tax for MFs investments and redemption. Can somebody give some examples?
Thank you in advance.
Regards
vrushal2