Can I redeem my SIP money before the tenure?

Query: Can I redeem my SIP money before the tenure?

Yes, you can redeem your units purchased in sip mode in all mutual fund schemes, except the one invested in ELSS  or Pension Plan scheme of mutual fund. All SIP installments in ELSS and Pension funds have a three year lock-in period. 

Before redeeming all units which are invested in sip mode, you have to consider following facts that may affect your returns

As said above you can redeem all your units which are purchased in sip mode, but, when you are cashing-in your mutual fund units, there are a couple of factors to consider that may affect if investment is made in sip:

1. Tax consequence

If investment is made in sip mode, each and every sip has to complete one year, if you sell units before completing of one year and If your mutual fund has realized significant capital gains in the past, you may be subject to capital gains taxes that is short term capital gains.

check this:

Tax implication on sale of mutual fund units

2. Exit load

If you are an investor who holds a fund that charges a back-end load, the total you receive when redeeming your units will be affected. If your fund has a back-end load, charges will be deducted from your total redemption value. For many funds, back-end loads tend to be higher when you liquidate your units earlier rather than later, so you need to determine if liquidating your units now is optimal. Information about applicable loads in mentioned in account statement, so before redeeming, please check all the details and applicable loads.