How to exit existing MF and invest the withdrawn amount in a better performing fund.

#1
Hi All,
I have accumulated a significant amount in a very popular fund with an absolute return of 48% in the past 5 years. Now I have identified a better performing fund in the same category.

Can you please guide me to the best method to exit the existing fund and invest the withdrawn amount into the newly identified fund.

I need this fund for a goal in 2032.

Thanks in advance.

Regards,
MAHESH
 
#2
Re: How to exit existing MF and invest the withdrawn amount in a better performing fu

Hi All,
I have accumulated a significant amount in a very popular fund with an absolute return of 48% in the past 5 years. Now I have identified a better performing fund in the same category.

Can you please guide me to the best method to exit the existing fund and invest the withdrawn amount into the newly identified fund.

I need this fund for a goal in 2032.

Thanks in advance.

Regards,
MAHESH
Hi mahesh
I can't help because I don't know how it work in India but I am sure someone else will do..
but why don't you ask your bank-brokers :)
 

travi

Well-Known Member
#3
Re: How to exit existing MF and invest the withdrawn amount in a better performing fu

Hi All,
I have accumulated a significant amount in a very popular fund with an absolute return of 48% in the past 5 years. Now I have identified a better performing fund in the same category.

Can you please guide me to the best method to exit the existing fund and invest the withdrawn amount into the newly identified fund.

I need this fund for a goal in 2032.

Thanks in advance.

Regards,
MAHESH
A.
You can either sell entire quantity in one shot or use STP
(Systematic Transfer Plan) and exhaust the old MF.

You will be liable for LCTG(Long Term Capital Gain) Tax.

If you calculate the LTCG in small amounts for STP,
then LTCG can be adjusted against basic exemption limit (Annual Income Tax) only after adjusting all other income.
However, it cannot be adjusted under section 80C etc deductions.
Only against basic 2.5L (below 60yrs and so on) if no other source of income.

B
You can save on LTCG by re-investing the profits in only one (that is first and not already owning) residential property.
OR
Look for NHAI or REC Capital Gain Tax saving Bonds.
The interest from bonds however will be taxable.
Other LTCG Tax saving methods have high risk associated and is out of scope here.
 

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