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Withdrawal Concerns

You need to be careful while withdrawing money from funds

I have invested in four mutual funds. I wanted to know if I would have to pay a load charge if I exit?

Going by the current scenario you would be charged the amount of load that was there during the period when you had invested. If you have invested in a fund after August 1, then in most of the funds if you withdraw money before one year, then the increased value of the entire investment would incur an exit load. So, if you withdraw money before one year, then you will be at a loss of one per cent. There would be another loss which you will have to bear. The government would also charge 10 per cent tax on the gains of the increase in your money in the form of a short-term gain. As such, your profits would take a hit by about 11-12 per cent.

I have bought into LIC Market Plus policy. But I don’t understand how to calculate profit.

You can get to know about all this after logging on to licindia.com or licindia.in. Log on to the website and ensure that you have the policy statement in your hand - as there are a lot of series in the Market Plus category - to ascertain in which year and which series you had bought it. Their NAVs come everyday like in mutual funds. Therefore, it would be written in your policy as to how many units you had purchased. And you would also have the statement of how much money you have invested every year. If you have done it just once, then it would be in your original policy document and what is the present price. Multiply both and you would get to know the worth of your investments.

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