I am quite excited to write this blog. Being a young company we are always in a hurry to release new features. Often we release the minimum required and then keep iterating. It works out pretty well as doing that gives our users the feature and gives us time to collect feedback and make the iterations more meaningful.
Redeem was also one of these features. We had a basic redemption feature. You could decide to redeem all or some of your money from a goal. And that was about it. Goalwise algorithm would allocate the amount to the most appropriate funds.
Although many users were happy as it didn’t require them to make decisions about which funds to redeem from, many also rightly felt that it was restrictive. Often they just wanted to redeem from a particular fund. Of course, right from the beginning we too knew we would need to update the feature and make it more sophisticated but intuitive at the same time.
So finally with the help of all of you (our users) and internal team discussions we now have an ALL NEW Advanced Redeem! If I may say so myself, I haven’t seen a more comprehensive redeem feature anywhere else :)
Okay so what is it? Yes, high time I get to that.
The basic stuff
1. Quick Redeem: Like the earlier redeem you can redeem all your money or some of it. Our system will be happy to split the money to appropriate funds and you can go ahead with the redemption.
2. Custom Redeem: You can now choose which funds you want to redeem from and the amount from each.
The cool stuff
Goalwise now crunches all the transaction data of your investments (SIPs, lumpsums etc) everyday and calculates which investments are now lock-in free, exit-load free, tax-free etc so that you can redeem only the money that will cost you the least without you having to hire a CA. All with a click of a button.
3. On the redeem page, you will be able to see the total money locked-in (in case of ELSS funds), the total money available for redemption and the total amount instantly redeemable (in case of the Emergency goal).
4. Redeem Only Exit Load Free Amount: You can choose, with just one click, to redeem only the amount in the goal that is free from exit loads across all funds in that goal.
5. Redeem Only Tax Free (LTCG) Amount: You can choose to redeem only the tax-free/LTCG amount in the goal. So in case of Equity MFs you can (again with just a click) withdraw only the amount on which no tax is applicable. And in case of Debt MFs you can choose to withdraw just the amount that qualifies for LTCG (Long term Capital Gains). In short, with just a click you can make sure that you redeeming only the amount which will attract the least amount of tax/no tax. Now who doesn’t love that? :)
6. You can do all this not only at the goal level but at an individual fund level also i.e. from any fund you can choose to redeem only the amount that is exit-load free, or tax-free(LTCG) and so on - all with just clicking around.
7. Show Taxes: Last but not the least! There is a small toggle button ‘Show Taxes’ on top of the Funds table and when you switch that on you can see the following three things for any amount that you enter against your Mutual Funds.
- How much of that amount is exit-load free
- How much of that amount is Short Term Capital Gains (STCG)
- How much of that amount is Long Term Capital Gains (LTCG)
Knowing these numbers will help you make the most cost-efficient and tax-efficient decisions while redeeming your money. A rupee saved is a rupee earned!
Having boasted of this feature I must add a disclaimer that we don’t really want you to use this feature often as staying invested for longer will get you closer to your goal.
Keep investing goalwise!