Systematic Investment Plan Tax Saver Redemption

Hi Santosh,

First of all let me tell you that any Tax Saver ELSS Mutual Funds has lock in period of 3 years as you are aware. So you can withdraw your money only after your investment completes 3 years of purchase. Now after 3 years you can redeem your all units there is no issue.

There is a time limit for redemption. If you opt for redemption of the mutual funds units before 3.00PM then your redemption process will get executed for the same day NAV and if you opt for your redemption of mutual funds units after 3.00PM then it will get redeem at the next day NAV.

You have posted a title of your query as “Systematic Investment Plan Tax Saver Redemption"; here I would like to inform you that if your investment in Tax Saver mutual fund is in SIP mode then each installment will be locked in for 3 years. For example if you start First SIP on 01.04.2009 then your First SIP amount can be redeemed only after 01.04.2012 and your second SIP amount after 01.05.2012 like that.

So the customer caller might have understood that you are opting redemption after 3.00PM and hence they told that it will consider next days NAV which is right.

Now when to redeem is the call that you have to take after 3 years. If after 3 years your investment has sufficient profit then you can redeem the units and book the profit or else let it be invested and as an when you see more profit you can redeem because after lock in period of 3 years you can redeem your units at any time.