Redeeming your Mutual Funds

Many mutual fund investors do not have a clear idea about the procedures to redeem mutual funds once they have invested in them. The process is actually very simple. It depends on whether you have bought the mutual fund from an agent or purchased it online.

A. Redemption if purchased from an agent 

If you have invested in a mutual fund through an agent, or directly through an Asset Management Company (AMC), you need to visit the mutual fund AMC office and fill a redemption form. The form requires you to provide your name, the folio number given by the mutual fund house and the number of units that you need to redeem. Ensure you provide all the information correctly and then submit the form.   

1. Bank account

When you first bought the mutual fund, you had to provide your bank account information. When you redeem the mutual fund, the same account will be credit with your mutual fund redemption amount. The problems start if you change your bank. If the last provided bank account number is not active anymore, you will need to submit the proof of your new bank account. You can also attach a copy of the pass book for the new bank. A declaration letter from the bank with bank manager’s signature will also be sufficient.  

2. Time needed to receive the money

Once you fill up and submit the form, the money will be credited to your account within four days. In some cases, you can get the money before that amount of time too. Ensure you complete the procedure at the start of the weekend in order to receive the money before the end of that week. 

B. Redemption if bought online

If you have an online account for your mutual fund, or if you have used your demat account for buying the mutual fund, the redemption process is very simple. Log on to your online account and you will find the option. Follow the steps and complete the process.

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