How to redeem your SIP investment in simple steps
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How to redeem your SIP investment in simple steps

  • Highlights

  • Redeem funds from your SIP only when it is an emergency

  • Untimely returns from redemption will incur tax

  • Redeem your SIP offline by going to the RTA office

  • Place redemption request for SIP online in just a click

You can choose to redeem your SIP to fund your urgent needs or fulfil the financial goal for which you were investing in the first place. You can also withdraw an SIP when you feel your investment is not earning profits and when you have decided on a more rewarding scheme. Here, knowing how to end an SIP the right way is key to ensuring you do not lose on any potential gains.

What to keep in mind:

- You do not need to sell all your top SIP units.
- If you have purchased close-ended schemes or open-ended schemes, you can redeem them anytime.
- If you have invested in ELSS, you cannot redeem your units before 3 years.
- You can redeem your SIP investment only on a business day.
- SIP is not calculated from the date of investment in the scheme; instead, it is calculated based on the purchased units.



- The returns from redemption is based on the net asset value (NAV) of the day.
- While many variants offer instant redemption, liquid or debt-oriented units offer payments between 1–2 working days from the time of your withdrawal application.
- All withdrawal-related updates are sent to your registered phone number and email ID. These are based on the information you provide to your fund house while starting your SIP.
- Keep your fund name, folio number, and the number of units you want to sell ready while opting for a withdrawal.
- Depending on the completed tenor of your investment, your returns will attract taxes.

Take a look at how you can redeem your SIP in a few easy steps.

Offline:

In order to redeem your SIP offline, you will need a redemption request form. You can procure this at the local branch office of your fund house or download it from their website. If you intend to redeem units belonging to more than one fund house, visit the RTA(registrar and share transfer agent’s) office. Here, you will first have to check under which RTA your fund houses operate. You can determine this by checking your mutual fund communication letters. Additionally, you will have to fill out a transaction slip. This can be downloaded from the website of your fund house or detached from your account statement. Once you are ready with all the required documents, you can submit them at any official transaction acceptance point for your fund house anywhere in the country.

5 reasons why you should invest in SIP

Online:

You can also choose to redeem your SIP units online with your online login details on the website of your fund house. You can also find other platforms for selling your SIP units in case your fund house does not provide you with an online account. These platforms will require your folio number, PAN card and email address. You can also find mobile applications that allow you to manage and redeem your SIP investments in a jiffy. Registrars and transfer agents offer these apps for your convenience. You can sell your SIP units online even if you have purchased them through an agent or third party.

Keeping this information handy will prove useful to you when you want to retrieve funds from your SIP at short notice. So, ensure you ask your SIP provider about redemption at the time of signing up.

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