Is it possible to redeem equity diversified mutual funds immediately?

I am 45 years married with 2 daughters and reside in Belagavi. My eldest daughter is 16 years and plans to do engineering in Computers in a reputed college in Bengaluru whose course fees + hostel are around 4 Lakhs. I had invested INR 2 Lakhs in a good equity diversified fund a few years ago which is now INR 3 Lakhs. Should I withdraw my money at once or wait for a few months. My daughter will seek admission in a year, Please advise?

Asked by : Akshay - Belagavi | 288 Views

You can withdraw your money from the equity diversified mutual fund using SWP (Systematic Withdrawal Plan). This is a method of redeeming money from your mutual fund investment. You can setup an SWP to withdraw INR 30,000 every month on[NB1] a particular given date. In the last month you can set it up so that all the remaining money can be withdrawn. The benefits of using SWP to withdraw your money: 1. You withdraw money just like a regular monthly income. 2. You can avoid the pitfalls of market timing when redeeming mutual fund units. Just as SIP helps you mitigate market risk at the time of investment, SWP helps mitigate market risk at the time of withdrawal. Almost all mutual fund schemes offer the SWP option. You can contact the support services of your distributor or even the Mutual fund house directly. giving the folio number of your scheme and set up the SWP.