The right time to invest in mutual funds depends on your individual financial situation and investment goals. Here are some factors to consider when deciding when to invest in mutual funds:
1. Investment Goals:
- Determine your financial objectives, such as retirement, education, or a major purchase. Your goals will dictate your investment timeline.
2. Risk Tolerance:
- Assess your comfort with risk. Choose mutual funds that match your risk tolerance, whether conservative, moderate, or aggressive.
3. Market Timing vs. Time in the Market:
- Avoid trying to predict market highs and lows. Focus on staying invested for the long term to benefit from compounding.
4. Diversification:.
- Spread risk by investing in a variety of mutual funds. Diversification can enhance portfolio stability.
5. Consistency (SIP):.
- Consider a systematic investment plan (SIP) to invest a fixed amount at regular intervals. SIPs can mitigate market volatility.
6. Market Awareness:.
- Stay informed about market conditions but avoid making impulsive decisions based solely on short-term fluctuations.
7. Professional Guidance:.
- Consult a financial advisor for personalized investment advice that aligns with your unique financial situation and goals.
The right time to invest in mutual funds depends on your individual circumstances and these key factors.
Investment returns depend on various factors, including the type of investment, market conditions, your investment strategy, and your risk tolerance.
Yes, in India, you typically need a bank account to invest in mutual funds. (Check Bank requirements section for more details)
Yes, you can typically do a partial redemption of your mutual fund (MF) investment. Partial redemption allows you to withdraw a portion of your invested amount while keeping the remaining units intact in the fund. (Check Redemption section under PROCESS for more details)
No, your Systematic Investment Plan (SIP) will not automatically cease if you partly or fully redeem your SIP investment. SIPs are independent of any redemptions you make from the same or other mutual fund schemes. Each SIP installment is treated as a separate purchase of mutual fund units.
Here's how it works:
1. Determine your investment goals and risk tolerance.
2. Choose an appropriate asset allocation based on your goals.
3. Research different types of mutual funds (equity, debt, etc.).
4. Consider factors like expense ratios, past performance, and fund manager's track record.
5. Review the fund's objectives and holdings in its prospectus.
6. Ensure the minimum investment amount fits your budget.
7. Consult a financial advisor if needed.
8. Start with a small investment and monitor performance. Adjust as necessary to align with your goals and risk tolerance.
You can check the suitability of the funds with the help of CALCULATORS on our website.
Staying invested in the long term offers these key benefits:
1. Compounding Returns: Long-term investments benefit from compounded gains.
2. Risk Reduction: It minimizes the impact of short-term market volatility.
3. Time to Recover: Long-term holdings can recover from losses.
4. Market Timing Risk: Avoid trying to time the market.
5. Tax Efficiency: Favorable tax rates may apply to long-term investments.
6. Reduced Costs: Fewer transaction costs and trading expenses.
7. Discipline: Encourages disciplined, goal-focused investing.
8. Achieve Goals: Aligns with long-term financial objectives.
9. Peace of Mind: Reduces stress and anxiety over market fluctuations.
Investing daily in a mutual fund is not a common practice, and it may not be the most efficient or cost-effective way to invest. Mutual funds are typically designed for periodic investments, and most investors choose to invest on a regular schedule, such as monthly or quarterly, which is often more convenient and cost-efficient.
The minimum investment amount in mutual funds can vary depending on the fund and the mutual fund company. Here are some general guidelines:
1.Lump Sum Investments: For one-time or lump-sum investments in mutual funds, the minimum amount is ₹5,000 or more, except ELSS tax saver funds which could be as low as Rs500 to Rs1000.
2.Systematic Investment Plans (SIP): Many mutual funds offer Systematic Investment Plans (SIP), which allow investors to make regular, periodic investments. SIPs typically have lower minimum investment requirements than lump-sum investments. The minimum SIP amount can range from ₹500 to ₹1,000 or more, depending on the fund.
3.Systematic Transfer Plans (STP) : Similar to SIPs, Systematic Transfer Plans (STP) also have minimum investment amounts that are Rs 500 for minimum 12 Installments and Rs 1000 for minimum of 6 investments.
If you miss a Systematic Investment Plan (SIP) payment in between, there are several things that can happen depending on the mutual fund company's policies, the number of missed payments, and the specific terms and conditions of your SIP will vary AMC to AMC.
*If only any installment is missed, the investor can opt to make an additional payment in the scheme in order to get the benefit of compounding for that particular month subject to a minimum corpus of Rs5000 in that scheme.(Applicable to all open ended schemes except ELSS tax saver funds)
*Generally, if 3 consecutive SIP payments are missed then the SIP is terminated by AMCs.
NAV, or Net Asset Value, is a key concept in the world of mutual funds and other investment funds. It represents the per-share market value of a mutual fund's or exchange-traded fund's (ETF) assets. NAV is calculated by dividing the total value of the fund's assets minus its liabilities by the number of outstanding shares.
The NAV is typically calculated at the end of each trading day, and it reflects the fund's current market value per share. Investors use NAV to determine the price at which they can buy or sell shares in the mutual fund. When you want to buy shares, you'll generally do so at the NAV price plus any applicable fees. When you want to sell shares, you'll receive the NAV price minus any applicable fees.
It's important to note that the NAV of a mutual fund can fluctuate daily based on changes in the value of its underlying investments. The goal of many mutual funds is to increase their NAV over time by investing in a diversified portfolio of assets.
The NAV is a crucial metric for investors because it provides a snapshot of the fund's underlying value and can help investors assess the performance of their investments and make informed decisions.
Mutual funds that own dividend-paying or interest-bearing securities pass those cash flows on to investors in the fund. Dividends are the investor's portion of a company's profits.These funds invest only in high-dividend stocks and high-coupon bonds in order to provide shareholders with regular income year after year.
Dividends are typically deposited in the investors registered Bank Account Directly by the AMC.
Yes, dividends received from mutual funds can often be reinvested. This is a feature commonly referred to as a "dividend reinvestment plan". When you choose to reinvest your mutual fund dividends, the fund will use the dividend payments to purchase additional units of the same mutual fund on your behalf. This allows you to compound your investment over time without receiving the dividend payments in cash.
Reinvesting dividends can be a valuable strategy for long-term investors. It allows you to benefit from the compounding effect, as the reinvested dividends generate their own dividends in the future, potentially leading to greater returns over time.
"Exit load" is a fee or charge imposed by a mutual fund when an investor redeems or sells their units (shares) before a specified holding period. It is essentially a penalty for exiting the fund prematurely. Exit loads are designed to discourage short-term trading and to encourage long-term investing in the fund.
1.Smooth Transmission: Nomination ensures a smooth transfer of investments to the nominee after the investor's death.
2.Avoids Legal Hassles: It helps avoid legal complications and probate proceedings.
3.Protects Loved Ones: Nomination ensures that assets go to intended beneficiaries, protecting their interests.
4.Clarity: It eliminates ambiguity, preventing disputes among family members.
5.Immediate Access: Nomination provides quick access to funds for financial support.
6.Flexibility: Investors can update nominations to reflect changing circumstances.
Nomination is now compulsory.
Use the following form to update your nominee
Transmission can be done in the event of the death of the Mutual Fund Holders. Your Rm will guide you through the process.Having said that, there are options of daily SIP as small as Rs100 per day suiting the needs of all kinds of investors.
To invest in mutual funds in India, you typically need the following documents:
1.KYC (Know Your Customer) and FATCA Declaration: These are essential for identity verification and include:
a)Proof of Identity (PoI): PAN card.
b)Proof of Address (PoA): Passport, Aadhar card(FIRST 8 digits to be masked), Voter ID, utility bills and bank statements.(For last two months)
c)Recent Passport-Sized Photograph: You may be required to provide passport-sized photographs as part of the application process.
d)KYC Form: You will need to fill out a KYC form provided by the fund house or the registrar and transfer agent (RTA). This form captures your personal information and serves as part of the KYC process.
2.PAN (Permanent Account Number) Card: It is mandatory for all mutual fund investments in India. Your PAN card serves as a unique identifier.
3.Bank Account: You need an active bank account in your name to invest in mutual funds. The account will be used for transactions such as purchases and redemptions.
4.Duly Filled Mutual Fund Application Form: This form is specific to the mutual fund scheme you wish to invest in. It includes details like the scheme name, plan (e.g., growth or dividend), and the amount you want to invest.
5.Nomination Form (mandatory): You can nominate a beneficiary to receive the mutual fund proceeds in case of your demise. It is compulsory to either opt in or opt out of the nomination Form. If the nominee is a minor, a guardian has to be appointed mandatorily.
6.Additional Documents (if applicable): Depending on the specific mutual fund or the AMC's requirements, you may need to provide additional documents or declarations.
When investing in mutual funds on behalf of a minor in India, you will need specific documents and follow certain procedures. Here are the typical requirements:
1. Proof of relationship with the guardian: Birth certificate(compulsory), Adhaar Card, Passport, Pan Card.
2. PAN Card of the Guardian:
- The guardian (usually a parent) investing on behalf of the minor should have a valid PAN card and KYC
3. Bank Account in the Name of the Minor:
- The mutual fund transactions (purchases, redemptions, dividends) are typically linked to a bank account in the minor's name.
4. KYC Compliance and FATCA Compliance of the Guardian:
5. Mutual Fund Application Form:
- Fill out the mutual fund application form specifying the minor as the sole holder and guardian to be specified under guardian column
Yes, in India, you typically need a bank account to invest in mutual funds.
Online Payment Methods for Mutual Fund Transactions:
1.Net Banking: Most mutual fund companies offer a net banking option on their websites or mobile apps. You can link your bank account and make transactions electronically. You can also transfer funds through RTGS and NEFT using net banking.
2.UPI (Unified Payments Interface): You can link your UPI ID and transfer funds seamlessly but with the same bank account which has been registered with your EF account.
3.NACH/OTBM:NACH/OTBM is a hassle-free way to automate your mutual fund transactions. You authorize your bank to debit your account as and when requested.
Offline Payment Methods for Mutual Fund Transactions:
1.Cheque :Investors can still make payments via cheque. Simply write a cheque in favor of the mutual fund scheme you're interested in and submit it to the RM or Nearest Branch.
2.RTGS/NEFT :You can use the RTGS system to transfer funds from your bank account to the mutual fund account. This method is suitable for investors who want to capitalize on market falls.
3.NACH (National Automated Clearing House):NACH is used for automated electronic transactions, including SIP payments. Investors authorize their bank to debit their account for SIP investments.
For offline purchase transactions use the form below:
Yes, you can change the bank account linked to your mutual fund investments to a new account. Here's how you can go about it:
1.Contact your RM: Reach out to the RM or the nearest EF branch
2.Submit a request form: Use the common Transaction Form, Fill in the new bank details and provide a canceled cheque leaf of the Old and New Bank
3.KYC Update (if needed): Updated KYC and PAN-Aadhaar linking are a must in the folio in which you wish to incorporate your new Bank Account
4.Confirmation: Once the change is processed, you will receive confirmation, and your new bank account will be linked to your mutual fund investments.
5.TAT: TAT is generally 7-10 days
Use the below link to: common transaction form.pdf
Under a single mutual fund folio, you can generally register a maximum of 5 bank accounts for transactions and fund-related activities. A folio represents a unique identification number assigned to your mutual fund investments, and it is associated with one primary bank account.
For registering multiple bank accounts, you will be required to fill up the multiple bank accounts registration form of the AMC where in you will have to specify the DEFAULT BANK ACCOUNT
If you wish to change the bank account linked to your mutual fund folio, you can follow the process outlined by the mutual fund company or Registrar and Transfer Agent (RTA) to update your bank account information, as explained in a previous response.
Physical Process:
Yes, you can typically change the bank account linked to your Systematic Investment Plan (SIP) in mutual funds. Here's how you can go about it:
1. Contact your RM or Nearest EF Branch:
2. Request a Form for Changing the Bank Account for SIP Auto Debit: Inform them that you want to change the bank account linked to your SIP. They will provide you with the necessary forms or instructions for this purpose.
3. Fill Out the Required Forms:. These forms typically require details like your folio number, the new bank account details, and your signatures as in MF and Bank Records and also the auto Debit Amount and Date.
4. Provide Supporting Documents (if required):. Depending on the mutual fund company's policies and the reason for the change, you may need to provide supporting documents, such as a cancelled cheque or a bank statement for the new account.
5. Verification and Processing:. The mutual fund company or RTA and the Bank will verify the details and process your request. This may take a few business days. (Generally 21-30 days.)
6. Confirmation:. Once the bank account change is processed, you will receive confirmation, and your SIP deductions will be made from the new bank account.
7. Monitor Your Bank Statements:. Keep an eye on your bank statements to ensure that the SIP deductions are correctly processed from the new account.
It's important to follow the specific procedures outlined by the mutual fund company or RTA for changing the bank account linked to your SIP. Different fund houses may have variations in their processes, so it's advisable to contact them directly for precise guidance and assistance when updating your SIP bank account.
ONLINE PROCESS:
Contact your RM or Nearest EF Branch and request them to cancel the existing Mandate and SIP Linked to the existing Mandate.
Provide new bank detail to be registered and request them to trigger a new mandate link
Approve the New Mandate:
After 3 working Days, Once your E-mandate is registered you may re-register the SIPs with the new Mandate.
Once you are Registered with Eastern Financiers, you can use your PAN NUMBER or REGISTERED MOBILE NUMBER as your log-in ID to log in into our portal. Click on FORGET PASSWORD and set your NEW PASSWORD to login into your dashboard.
Once you are logged in, under the utilities section you have an option to change your password.
Incase of a rejection, you will automatically be notified through email or SMS from The Registrar of the scheme. You will also be notified by your RM or EF team.
Eastern Financiers will provide you with the portal access as well as an APP where you can check your investment status regularly without any hassles.
Investment: Process/TAT:
A. Purchase: This is how you purchase mutual fund units either in lump sum (one-time) or SIP both in physical and online modes, along with the typical turnaround time (TAT) for different payment modes:
1. Lump Sum Purchase -
Lump sum- Offline Mode:
1. Contact your RMs or the Nearest EF Branch*
2. Obtain the Application Form:.
- Request a physical lump sum application form for the mutual fund scheme you wish to invest in.
3. Fill Out the Form:.
- Complete the application form with your personal details, including your name, address, PAN (Permanent Account Number), and bank details.
4. Specify the Investment Amount:.
- Indicate the amount you want to invest in the chosen mutual fund scheme.
5. Payment Mode:.
- Decide on the payment mode:
a) Cheque: Write a cheque in favor of the mutual fund scheme and attach it with the application form.
b) Demand Draft (DD): If you prefer DD, obtain one in favor of the mutual fund scheme and attach it.
c) Pay Order: Some fund houses also accept pay orders.
d) RTGS/NEFT.(Account Details to be shared by RMs/ Branch)
6. Submit the Form and Payment:.
- Submit the completed application form along with the payment instrument (cheque, DD, or pay order) to the RM or Branch
7. Processing Time (TAT):.
- The processing time for physical lump sum investments typically takes a few business days. The exact TAT can vary based on the Investors bank mandate.
For investing in Existing folios, use the form below:
For investing in new schemes online, you can transact directly through EF portal or contact your RM
Lump Sum-Online Mode:
1. Log In to Your Mutual Fund Account:.
- Visit the EF website and log in to your online account using your credentials.
2. Select INVEST ONLINE:.
- Navigate to the "Purchase in a New Scheme" section within your online account and select “Lump Sum” option
3. Choose the Scheme:.
- Select the mutual fund scheme in which you want to invest.
4. Enter Investment Details:.
- Enter the amount you wish to invest as a lump sum.
5. Payment Mode:.
- Choose your preferred payment mode:
a) Net Banking:. Use your bank's net banking facility to transfer the investment amount.
b) UPI:. Make the payment using Unified Payments Interface (UPI) if available.
c)Debit Card:. Enter your debit card details for payment, if supported.
d) Cheque. Cheque to be drawn in favour of NSE clearing- New MUtual Fund Platform
e) RTGS/NEFT. The investor has to transfer the amount to the Virtual Account Number as Provided by the RM or Branch
f) Debit Mandate. You may register a ONE-TIME BANK MANDATE and make payments through it
6. Review and Confirm:
- Review the investment details and confirm the lump sum purchase.
7. OTP Authentication (if required):.
- Depending on security measures, you may be required to authenticate the transaction with a one-time password (OTP) sent to your registered mobile number or email. All holders have to approve the Fresh investments.
8. Confirmation:
- After confirmation, you will receive an online confirmation of your lump sum purchase.
9. Receipt and Records:
- Save a copy of the online transaction confirmation for your records.
Processing Time (TAT) for Online Lump Sum Purchase:
- The processing time for online lump sum purchases is typically faster compared to physical purchases. It can vary between a few hours to one business day, depending on the mutual fund company and the payment mode used.
Please note that the TAT mentioned here is approximate and can vary based on factors such as the mutual fund company's internal processes and the specific payment method chosen. It's advisable to check with the respective mutual fund company for precise processing times and any changes in procedures.
NOTE: Any fresh purchase of FOLIO or SCHEMEs has to be approved by all holders. Subsequent purchase by any one Holder
2. SIP
Starting a Systematic Investment Plan (SIP) in mutual funds involves setting up regular contributions to a mutual fund scheme. SIPs can be initiated both in physical and online forms, and the turnaround time (TAT) for different payment modes can vary. Here's a guide for starting an SIP in both physical and online modes:
Starting an SIP - Physical Mode:
1. Contact your RMs or the Nearest EF Branch:
Contact your RMs or the Nearest EF Branch Where you want to start your SIP.
2. Obtain an SIP Application Form:
- Request an SIP application form for the specific mutual fund scheme you wish to invest in.
3. Fill Out the Form:
- Complete the SIP application form with your personal details, including your name, address, PAN (Permanent Account Number), and bank details.
4. Specify the Investment Amount and Frequency:.
- Indicate the amount you want to invest in the SIP and the frequency (e.g., monthly, quarterly) at which you want to make contributions.
5. Bank Mandate Form:
- Provide a bank mandate form (if required by the mutual fund company) for automatic debits from your bank account.
6. Payment Mode:
- Choose the payment mode:
-Cheque:. Write a post-dated cheque for the first SIP installment and attach it with the application form.
-NACH/OTBM:. If available, authorize the mutual fund company to debit your bank account electronically for SIP payments.
7. Submit the Form:
- Submit the completed SIP application form, bank mandate form (if required), and the first installment cheque (if applicable) to the nearest collection center or the fund house's office.
8. Processing Time (TAT):
- The processing time for initial purchase of an SIP in physical will be 2-3 business days and the time for registration of NACH/OTBM would be 21-30 days
Contact your RM for starting a SIP
Starting an SIP - Online Mode:
1. Log In to Your Mutual Fund Account:
2. Go To Invest Online Tab: Click on Bank Mandate Registration. Select The option between:
Physical (Can be downloaded, printed and signed, and thereafter uploaded on the portal. Takes 21 days to get activated) Or
E-Mandate(Is through Net banking Or Debit Card, Gets activated in 3 Calendar days)
3. Choose the Scheme:
- Select the mutual fund scheme in which you want to start the SIP.
4. Enter SIP Details:
- Specify the investment amount, frequency, and start date for your SIP contributions.
5. Review and Confirm:
- Review the SIP details, Confirm your SIP registration.
6. OTP Authentication (if required):
- Depending on security measures, you may be required to authenticate the SIP registration with a one-time password (OTP) sent to your registered mobile number or email.
7. Confirmation:
- After confirmation, you will receive an online confirmation of your SIP registration.
Processing Time (TAT) for Online SIP:
- The processing time for starting an SIP in online mode is typically faster compared to physical applications. It can range from a few hours to a couple of business days, depending on the mutual fund company and the payment mode used.
Please note that the TAT mentioned here is approximate and can vary based on factors such as the mutual fund company's internal processes and the specific payment method chosen. It's advisable to check with the respective mutual fund company for precise processing times and any changes in procedures.
If you miss a Systematic Investment Plan (SIP) payment in between, there are several things that can happen depending on the mutual fund company's policies, the number of missed payments, and the specific terms and conditions of your SIP will vary AMC to AMC.
*If only any installment is missed, the investor can opt to make an additional payment in the scheme in order to get the benefit of compounding for that particular month subject to a minimum corpus of Rs5000 in that scheme.(Applicable to all open ended schemes except ELSS tax saver funds)
*Generally, if 3 consecutive SIP payments are missed then the SIP is terminated by AMCs.
C. STP(Can be registered only after a purchase in the source scheme)
A Systematic Transfer Plan (STP) is an investment strategy in which you transfer a fixed amount of money from one mutual fund scheme (source scheme generally a debt or liquid fund) to another (target scheme generally an equity or equity oriented scheme) at regular intervals. STPs can be initiated both in physical and online forms, and the turnaround time (TAT) for different schemes depends upon the scheme categorisation. Here's a guide for starting an STP in both physical and online modes:
Starting an STP - Physical Mode:
1. Contact your RMs or the Nearest EF Branch*
Contact your RMs or the Nearest EF Branch where you want to start your STP.
2. .Obtain an STP Application Form:
- Request an STP form for the specific mutual fund scheme you wish to invest in as the target scheme.(The source fund should be in the same AMC)
3. .Fill Out the Form:
- Complete the STP application form with your personal details, including your name, Folio Number, PAN (Permanent Account Number), existing Scheme name(Source Scheme) and Target Scheme
4.Specify the Investment Amount and Frequency:
- Indicate the amount you want to transfer in the STP (Option Between Fixed or Capital Appreciation)and the frequency (e.g.,weekly, fortnightly, monthly, quarterly) at which you want to make transfers.
5.Submit the Form:
- Submit the completed STP application form
6.Processing Time (TAT):
- The processing time for starting an STP in physical mode is 7-10 days
Starting an STP - Online Mode:
1. Log In to Your Mutual Fund Account:
- Visit the EF website and log in to your online account using your credentials.
2. Under INVEST ONLINE TAB:
- Navigate to the "Transaction in Existing Folios” then, from the drop down Menu, select "Start STP"
3. Select the Target Scheme:
- Specify the mutual fund scheme (target scheme) where you want to transfer the money.
4.Enter STP Details:
- Specify the investment amount, frequency, and start date for your STP transfers.
5.Review and Confirm:
- Review the STP details,. Confirm your STP registration.
6. OTP Authentication (if required):
- Depending on security measures, you may be required to authenticate the STP registration with a one-time password (OTP) sent to your registered mobile number or email.
7. Confirmation:
- After confirmation, you will receive an online confirmation of your STP registration.
Processing Time (TAT) for Online STP:
- The processing time for starting an STP in physical mode is 7-10 days after approval.
D.SWP(Can be registered only after a purchase in the source scheme)
A Systematic Withdrawal Plan (SWP) is an investment plan that allows you to withdraw a fixed amount or a specific number of units from a mutual fund scheme at regular intervals. SWPs can be initiated both in physical and online forms, and the turnaround time (TAT) for different schemes varies. Here's a guide for starting an SWP in both physical and online modes:
Starting an SWP - Physical Mode:
1.Contact your RMs or the Nearest EF Branch:
Contact your RMs or the Nearest EF Branch where you hold your mutual fund investments.
2.Obtain an SWP Application Form:
- Request an SWP application form for the specific mutual fund scheme from which you want to initiate the withdrawals.
3.Fill Out the Form:
- Complete the SWP application form with your personal details, including your name, address, PAN (Permanent Account Number), and Existing Scheme Name
4.Specify the Withdrawal Amount and Frequency:
- Indicate the amount or the number of units you want to withdraw through the SWP and the frequency (e.g., weekly, fortnightly,monthly, quarterly) at which you want to make withdrawals.(Withdrawls can be done as Fixed amount or Capital appreciation)
5.Submit the Form:
- Submit the completed SWP application form,
Starting an SWP - Online Mode:.
1.Log In to Your Mutual Fund Account:
- Visit the EF website and log in to your online account using your credentials.
2.Under INVEST ONLINE TAB.
- Navigate to the "Transaction in Existing Folios” then, from the drop down Menu, select "Start SWP"
3.Enter SWP Details:
- Specify the withdrawal amount, frequency, and start date for your SWP transactions.
4.Review and Confirm:
- Review the SWP details,. Confirm your SWP registration.
5.OTP Authentication (if required):
- Depending on security measures, you may be required to authenticate the SWP registration with a one-time password (OTP) sent to your registered mobile number or email.
6.Confirmation:
- After confirmation, you will receive an online confirmation of your SWP registration.
Processing Time (TAT) for Online SWP:
- The processing time for starting an SWP in online mode is 7-10 days.
Please note that the TAT mentioned here is approximate and can vary based on factors such as the mutual fund company's internal processes and the specific payment method chosen. It's advisable to check with the respective mutual fund company for precise processing times and any changes in procedures.
Yes, you can redeem your mutual fund (MF) investment. Redeeming your investment means selling your mutual fund units and receiving the corresponding amount in cash.
Offline Redemption Process:
1.Visit the Nearest Branch or Registrar Office:
Locate the nearest branch of the mutual fund house or the registrar and transfer agent (RTA) office.
2.Collect Redemption Form:
Request a redemption form from the office. You can also download the form from the official website of the mutual fund house.
3.Fill in the Redemption Form:
Complete the redemption form with details such as your folio number, scheme name, and the number of units or amount you wish to redeem.
4.Submit the Form:
Hand over the filled redemption form along with any supporting documents to the concerned authority at the branch or office.
5.Provide Bank Details:
If not provided earlier, you may need to provide or verify your bank details for the redemption amount to be credited.
6.Receive Acknowledgment:
After submission, you should receive an acknowledgment receipt. This receipt serves as proof that you have initiated the redemption process.
7.Wait for Confirmation:
The mutual fund house will process your request, and you will receive a confirmation of the redemption through email or physical mail. This confirmation includes details of the transaction.
Important Points to Remember:
- Be aware of any exit loads or charges that may apply, especially if you are redeeming before a specified holding period.
- Ensure your Know Your Customer (KYC) details are up-to-date.
- Consult with your RM to understand any tax implications associated with the redemption.
Please use the form below for redemptions:
Online Redemption Process:
1.Login to the EF Website/Online Platform:
Visit the EF website or log in to the Ef app
2.Access Your Portfolio:
Navigate to the section that allows you to view your portfolio or holdings.
3.Select the Fund for Redemption:
Identify the mutual fund scheme or schemes you want to redeem from your portfolio.
4.Enter Redemption Details:
Input the number of units or the amount you want to redeem. Some platforms also allow you to specify the mode of payment (e.g., bank transfer).
5.Verify and Confirm:
Review the redemption details to ensure accuracy. Confirm your request.
6.Provide Bank Details:
If not provided earlier, you may be prompted to enter or verify your bank details for the redemption amount to be credited.
7.Enter OTP/Authorization:
Depending on the platform, you may need to enter a One-Time Password (OTP) or use any other form of authorization for security purposes.
8.Receive Confirmation:
After successful submission, you should receive an online confirmation of your redemption transaction. This confirmation typically includes details like the redemption amount and the date of the transaction.
"Exit load" is a fee or charge imposed by a mutual fund when an investor redeems or sells their units (shares) before a specified holding period. It is essentially a penalty for exiting the fund prematurely. Exit loads are designed to discourage short-term trading and to encourage long-term investing in the fund.
No, your Systematic Investment Plan (SIP) will not automatically cease if you partly or fully redeem your SIP investment. SIPs are independent of any redemptions you make from the same or other mutual fund schemes. Each SIP installment is treated as a separate purchase of mutual fund units.
Here's how it works:
1. SIP Continues:. Your SIP will continue as per the schedule you've set, irrespective of any redemptions you make. If you've scheduled a monthly SIP on a specific date, it will continue to deduct the predetermined amount from your bank account on that date.
2. SIP Redemptions:. If you choose to partially or fully redeem your mutual fund units, it will not impact the existing SIPs. SIPs are considered separate investments, and their schedules remain unaffected by redemptions.
Yes, you can typically do a partial redemption of your mutual fund (MF) investment. Partial redemption allows you to withdraw a portion of your invested amount while keeping the remaining units intact in the fund. Here's how you can go about it:
Partial redemptions provide flexibility and allow you to access a portion of your investment without fully exiting the mutual fund scheme. Keep in mind that there may be exit loads, tax implications, or other charges associated with partial redemptions, depending on the mutual fund scheme and the duration of your investment. It's advisable to check the specific terms and conditions of the mutual fund scheme and consult with a financial advisor if needed before initiating a partial redemption.
Certainly,You can switch between schemes of the same AMC. Here are the steps for both physical and online fund switches in mutual funds:
For Physical Fund Switch:
1.Contact your RMs or the Nearest EF Branch: Contact your RMs or the Nearest EF Branch where you hold your mutual fund investments.
2.Fill Out the Form:
Complete the fund switch form with the necessary details, including your folio number, the source scheme (the scheme you're switching from), the target scheme (the scheme you're switching to), and the amount or units you want to switch.
3.Specify the Mode of Switch:
Choose between "Fully Switch" (if you want to switch your entire investment) or "Partial Switch" (if you're switching only a portion of your investment).
4.KYC Update (if needed):Updated KYC and PAN-Aadhaar linking are a must in the folio in which you wish to incorporate your new Bank Account
5.Submit the Form:
Submit the completed fund switch form,
6.Processing:
The mutual fund company will process your physical fund switch request, and your investment will be transferred from the source scheme to the target scheme.
7.Confirmation:
You will receive confirmation of the fund switch, typically through an account statement or email, detailing the switched amount or units in the target scheme.
Use the below form for Fund Switch:
For Online Fund Switch:
1.Log In to Your Mutual Fund Account:
Visit the EF website and log in to your online account using your credentials.
2.GO to the INVEST ONLINE Tab:.
Navigate to the "Transaction in Existing Folio" From the drop down menu, Select SWITCH
3.Choose the Source and Target Schemes:
Select the source scheme (the scheme you're switching from) and the target scheme (the scheme you're switching to).
4.Specify the Amount or Units:
Enter the amount or number of units you want to switch.
5.Review and Confirm:
Review the details of your fund switch, including any applicable charges or taxes. Confirm your switch request.
6.OTP Authentication (if required):
Depending on your mutual fund company's security procedures, you may be required to authenticate the transaction with a one-time password (OTP) sent to your registered mobile number or email.
7.Confirmation:
After confirming the switch, you will receive an online confirmation with the details of your transaction.
8.Receipt and Records:
Save a copy of the online transaction confirmation for your records.
9.TAT:
Equity to Debt: T+2 to T+5 Business Days (depending upon domestic or International Equity Fund)
Equity to Equity:T+2 to T+5 Business Days(depending upon domestic or International Equity Fund)
Debt to Equity:T+1 Business Days
Whether you choose to switch funds physically or online, it's important to carefully review the terms, charges, and tax implications associated with the switch. Additionally, consider consulting with a financial advisor if you have any doubts or questions about the fund switch process.
NAV, or Net Asset Value, is a key concept in the world of mutual funds and other investment funds. It represents the per-share market value of a mutual fund's or exchange-traded fund's (ETF) assets. NAV is calculated by dividing the total value of the fund's assets minus its liabilities by the number of outstanding shares.
The NAV is typically calculated at the end of each trading day, and it reflects the fund's current market value per share. Investors use NAV to determine the price at which they can buy or sell shares in the mutual fund. When you want to buy shares, you'll generally do so at the NAV price plus any applicable fees. When you want to sell shares, you'll receive the NAV price minus any applicable fees.
It's important to note that the NAV of a mutual fund can fluctuate daily based on changes in the value of its underlying investments. The goal of many mutual funds is to increase their NAV over time by investing in a diversified portfolio of assets.
The NAV is a crucial metric for investors because it provides a snapshot of the fund's underlying value and can help investors assess the performance of their investments and make informed decisions.
Yes, you can buy mutual fund (MF) units in a demat account at the time of purchase. This is known as "Demat mode" of investing in mutual funds. Here's how it works:
1. It is mandatory to hold a DEMAT Account and a Trading Account, If you want to hold the units in Demat mode.
2. .Link Demat Account with Mutual Fund Account:. You'll need to link your demat account with your mutual fund account. This is typically done by providing a copy of the CLIENT- MASTER list along with the details to be filled up in the MF Application Form.
3. .Purchase MF Units:. When you want to buy mutual fund units, you can do so through the demat mode. You'll need to specify the mutual fund scheme and the number of units you want to purchase. The payment will be debited from your linked bank account in online mode or through Cheque for Physical Mode.
4. .Allotment in Demat Form:. After the purchase is complete, the mutual fund units will be allotted to your demat account in electronic form. You'll receive an allotment statement, similar to a trade confirmation in the stock market.
5. .Demat Account Holdings:. You can view your mutual fund holdings in your demat account statement, along with any other securities you hold in the demat account.
Buying MF units in demat form offers convenience for investors who already have a demat account and are familiar with the dematerialized securities market. It allows you to manage your mutual fund investments alongside your other financial assets.
Please note that, MF Units bought in DEMAT Mode can be redeemed or Sold only through the trading platform.
Yes, you can convert physical units into Demat units.You need to fill in the Dematerialisation request and submit it along with the mutual fund statement to your depository.
Yes, you can convert mutual fund units held in a Demat (dematerialized) form back into physical form, which is known as "Remat" (Rematerialization). To do this, follow these steps:
1. .Contact Your Depository Participant (DP):. Your DP is the entity with whom you have your Demat account. Inform them that you want to rematerialize your mutual fund units held in Demat form.
2. .Fill Out the Rematerialization Request Form:. Your DP will provide you with a Rematerialization Request Form. Fill out this form with the necessary details, including the mutual fund scheme, folio number, and the number of units you want to rematerialize.
3. .Submit the Request Form:. Submit the completed Rematerialization Request Form to your DP, along with any required supporting documents or proofs, such as a copy of your Demat account statement and statement of MF holdings.
4. .Processing and Verification:. Your DP will process your request and verify the details provided. This may take a few business days.
5. .Allotment of Physical Units:. Once your request is approved, the mutual fund units will be allotted to you in physical (certificate) form. You will receive a confirmation mail on your registered E-Mail ID.
Please note that while you can rematerialize mutual fund units from Demat to physical form, this process is becoming less common as most investors now prefer holding mutual fund units in Demat form for convenience.
|
Type of Schemes |
Transaction type |
Cut-off timings |
|
Liquid Funds & Overnight Funds |
Subscription (including Switch-in from other schemes) |
1:30 p.m. |
|
Redemption (including Switch-in from other schemes) |
3:00 p.m. |
|
|
All other schemes (other than Liquid Funds / Overnight Funds) |
Subscription (including Switch-in from other schemes) |
3:00 p.m. |
|
Redemption (including Switch-in from other schemes) |
3:00 p.m. |
Yes, you can gift your mutual fund investments to another person in India. This process involves transferring the mutual fund units from your own account to the recipient's account. Here's how you can go about it:
1.Contact your RM or EF Branch:
2. Understand the Gift Process:
The units can only be transferred in DEMAT form. If you hold physical units, they need to be converted into DEMAT MODE for gifting.
- Presently, the only way of gifting MUTUAL FUND UNITs is through OFFLINE transfers from holder’s DEMAT ACCOUNT to the recipient’s DEMAT ACCOUNT
3. Fill Out the Necessary Forms:
Fill up a Dematerialisation Form with Details like; DP ID, CLIENT ID, FOLIO NO, ISIN of the MUTUAL FUND SCHEME and THE NO oF Units you wish to dematerialise..
4. KYC Compliance:
- Ensure that both you (the donor) and the recipient have completed their Know Your Customer (KYC) procedures, as KYC compliance is mandatory for mutual fund investments. Documentary requirements would be as per the Depository where you have the DEMAT ACCOUNTS
5. Transfer the Mutual Fund Units:
-Fill in the offline transfer request Form obtained from your Depository. Once the forms are completed and submitted, the mutual fund company or RTA will facilitate the transfer of the mutual fund units from your folio to the recipient's folio.
6. Tax Implications:
- Be aware of any tax implications associated with the gift. In India, gifts of mutual funds are generally considered non-taxable for the recipient, but you should consult with a tax advisor to understand the specific tax rules and any potential gift tax liabilities.
7. Keep Records:
- Maintain records of the gift transaction, including copies of all documents submitted and received. This documentation may be useful for future reference or for tax purposes.
Yes, returns from mutual funds are subject to taxation in many countries, including India. The tax treatment of mutual fund returns can vary depending on the type of mutual fund, the holding period, and the tax laws of the specific country. In the context of India, here's a brief overview of how mutual fund returns are taxed:
1.Equity Mutual Funds:
- Short-Term Capital Gains (STCG): If you hold equity mutual fund units for less than one year, any realized gains are considered short-term capital gains.Short-term capital gains on equity mutual funds were taxed at a flat rate of 15%.
- Long-Term Capital Gains (LTCG): If you hold equity mutual fund units for one year or more, any realized gains are considered long-term capital gains. LTCG on equity mutual funds are tax-exempt upto a limit of Rs 1,00,000 including ELSS Funds.
2.Debt Mutual Funds:
- Short-Term Capital Gains (STCG): Gains from debt mutual funds held for less than three years are considered short-term capital gains. These gains are added to your taxable income and taxed at your applicable income tax slab rate.
3. Income Distribution Cum Capital Withdrawals (IDCW): In India, dividends received from mutual funds were tax-free in the hands of the investors. However, SEBI has come up with a rule of deducting a tax @10% on dividend exceeding Rs 5000p.a.
Refer to the link below for an overview. Contact your Tax Consultants for more details.
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