Last week, we had written about the various ways of buying Mutual Funds in India. Today, let’s see how to redeem or sell Mutual Funds. The following are the redemption procedures, depending on the mode of purchase of the Mutual Fund:
Redemption process if Mutual Funds have been purchased through an agent: When you have purchased your Mutual Fund through an agent, you can redeem it through the same agent. The agent will provide you with the Mutual Fund Redemption Form. This needs to be filled in and submitted to the agent, who will then submit it to the Mutual Fund office to process your request.
Redemption process if Mutual Funds have been purchased through the AMC directly: When you buy Mutual Funds from the AMC directly, you can sell it through the AMC, either on their websites or by visiting the closest office. Most AMCs offer the facility of transacting online. You can login to your account and redeem the units. However, if you do not have an online account, or if the AMC does not offer this facility, you can collect the redemption form from the AMC’s office and submit it after filling in the details.
Redemption process if Mutual Funds have been purchased through online portals: When you purchase Mutual Funds through online portals like FundsIndia and FundSuperMart, the units can be redeemed through a few clicks. You will need to login to your account with these portals and select the scheme to be redeemed. You have to simply select the number of units to be redeemed to process the request.
Redemption process if Mutual Funds have been purchased through Demat and Online Trading Account: This method is similar to the previous method. You will need to login to your trading account and access the Mutual Funds section. Select the scheme to be redeemed and the number of units to be redeemed. When you confirm your order, your request will be taken up for processing.
Redemption process if Mutual Funds have been purchased through CAMS: CAMS offers the ease of redeeming more than one Mutual Fund in a single place. You can download the Redemption Transaction Slip on the CAMS website, or visit your nearest CAMS office to collect the same. You will have to fill in the particulars by specifying the name of the fund and the folio number. Submit this to the CAMS processing assistant, who will process your request by putting it up to the concerned AMC. However, CAMS does not handle all Mutual Fund requests. So remember to check with CAMS on which mutual funds they handle, before approaching them.
Important points to note when you redeem your Mutual Funds:
Filling in the application form: For offline methods of redemption discussed above, you will have to fill the Redemption Form. Though this form is very simple to fill, it is critical to fill in all your details correctly (especially the folio number), to avoid problems later.
NAV applicability: The NAV at which your units will be sold depends on the time you submit your redemption request. If you submit your request before 3.00 pm, the closing NAV of the same day will be applicable. However, if the request is submitted after 3.00 pm, the next day’s NAV will be considered.
Time to receive redemption proceeds: It normally takes a maximum of 2-3 working days to receive the redemption proceeds in your bank account.
Bank account: The proceeds of sale of mutual fund units will be credited to your bank account which has been registered with the AMC at the time of purchase. It is important to make sure that this bank account is active. If this bank account is inactive, you will have to follow several procedures to get the proceeds credited to your new bank account, which can be quite exasperating. In very rare cases, electronic transfer is not done and the AMC sends a cheque to the KYC address of the holder, registered with it.
Redemption process if Mutual Funds have been purchased through an agent: When you have purchased your Mutual Fund through an agent, you can redeem it through the same agent. The agent will provide you with the Mutual Fund Redemption Form. This needs to be filled in and submitted to the agent, who will then submit it to the Mutual Fund office to process your request.
Redemption process if Mutual Funds have been purchased through the AMC directly: When you buy Mutual Funds from the AMC directly, you can sell it through the AMC, either on their websites or by visiting the closest office. Most AMCs offer the facility of transacting online. You can login to your account and redeem the units. However, if you do not have an online account, or if the AMC does not offer this facility, you can collect the redemption form from the AMC’s office and submit it after filling in the details.
Redemption process if Mutual Funds have been purchased through online portals: When you purchase Mutual Funds through online portals like FundsIndia and FundSuperMart, the units can be redeemed through a few clicks. You will need to login to your account with these portals and select the scheme to be redeemed. You have to simply select the number of units to be redeemed to process the request.
Redemption process if Mutual Funds have been purchased through Demat and Online Trading Account: This method is similar to the previous method. You will need to login to your trading account and access the Mutual Funds section. Select the scheme to be redeemed and the number of units to be redeemed. When you confirm your order, your request will be taken up for processing.
Redemption process if Mutual Funds have been purchased through CAMS: CAMS offers the ease of redeeming more than one Mutual Fund in a single place. You can download the Redemption Transaction Slip on the CAMS website, or visit your nearest CAMS office to collect the same. You will have to fill in the particulars by specifying the name of the fund and the folio number. Submit this to the CAMS processing assistant, who will process your request by putting it up to the concerned AMC. However, CAMS does not handle all Mutual Fund requests. So remember to check with CAMS on which mutual funds they handle, before approaching them.
Important points to note when you redeem your Mutual Funds:
Filling in the application form: For offline methods of redemption discussed above, you will have to fill the Redemption Form. Though this form is very simple to fill, it is critical to fill in all your details correctly (especially the folio number), to avoid problems later.
NAV applicability: The NAV at which your units will be sold depends on the time you submit your redemption request. If you submit your request before 3.00 pm, the closing NAV of the same day will be applicable. However, if the request is submitted after 3.00 pm, the next day’s NAV will be considered.
Time to receive redemption proceeds: It normally takes a maximum of 2-3 working days to receive the redemption proceeds in your bank account.
Bank account: The proceeds of sale of mutual fund units will be credited to your bank account which has been registered with the AMC at the time of purchase. It is important to make sure that this bank account is active. If this bank account is inactive, you will have to follow several procedures to get the proceeds credited to your new bank account, which can be quite exasperating. In very rare cases, electronic transfer is not done and the AMC sends a cheque to the KYC address of the holder, registered with it.
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