Most investors prefer mutual funds as they can quickly get money back when units are redeemed. Here is a post on how one can redeem mutual fund units.
You can redeem units from a mutual fund scheme on any business day. Below is the process for the redemption of mutual fund units:
- Download a transaction slip from the fund house website or detach from the account statement.
- Fill in a transaction slip.
- Submit the redemption application at any of the fund house’s official points of acceptance of transactions in India.
Online redemption is facilitated by many fund houses through their websites. If you have made investments through online portals, you can also use the online facility for redemption too.
How Much Do You Get When Redeem?
Calculate the approximate value of your investments by multiplying the number of units you hold on that day with the NAV of that particular scheme on that day. The value could also be subject to
- Exit load. One percent exit load would be levied on equity-oriented mutual fund schemes if redeemed within a year of purchase. However, a few schemes do not have any exit load.
- Applicable NAV (Applicable NAV is the NAV that depends on the day and the time of submission of the redemption request).
- Securities Transaction Tax (STT) as applicable to the equity-oriented scheme.
The redemption proceeds are deposited to the investor’s bank account if the IFSC code and the branch name are enabled. If the investor doesn’t provide required bank details, cheques are sent to the registered address. The redemption proceeds are paid within 2 working days for debt-oriented or liquid units. It takes 4 to 5 working days for equity mutual funds.