INSUBCONTINENT EXCLUSIVE:
The process is easy, and depending on the type of mutual fund you hold, money can be credited to your bank account in a maximum of 4-5
working days after you submit a redemption request to the fund house
1
How does an investor redeem mutual fund unitsA unit of a mutual fund can be redeemed on any business day
In the physical mode, investors need to fill in the requisite transaction slip, which can be download from the fund house website or detach
from the bottom of your account statement
The redemption application can be submitted at the fund house office or any of the official points of acceptance of transactions, across the
country.
Many fund houses also allow online redemptions, through their websites
If you have invested through an online portal you could redeem your mutual fund units online as well.
2
How do I know what is the amount that will be creditedIt is easy to calculate the approximate value of your investments.
It can be done by
multiplying the number of units you hold on the day with that day’s NAV of that particular scheme
However it will be subject to
a) exit load, if any for the scheme and
b) ‘applicable NAV’ i.e., the NAV that depends on the day and time
when that you submit your redemption request
For example if you are submitting your redemption before the cut-off time on a business day you are entitled to the NAV of the same day
Do note that securities transaction tax (STT) is applicable on redemption of equity-oriented schemes
3
How long does it take for the redemption proceeds to be creditedRedemption proceeds for liquid or debt-oriented units are paid within 1-2
For equity mutual funds, the amount is credited within 4-5 working days
The redemption proceeds are paid to the investor’s registered bank account provided that the bank branch is enabled for RTGS / NEFT
If the fund house, does not have complete bank details, cheques are sent to the investor.
4
What load or charges will the investor have to pay on redemptionGenerally most equity-oriented schemes have an exit load of 1 per cent if
redeemed before a year from purchase
There are some schemes which have Liquid or ultra short-term funds do not have any exit load
So, if you hold an equity mutual fund and you wish to redeem before a year, an exit load, will be deducted from the NAV which is applied for
your redemption per unit.
