Redemption at FundsIndia
Redemptions are withdrawals made from mutual fund investments.
Mutual fund investments made through FundsIndia can be redeemed very easily. It takes only a few clicks in one's FundsIndia account to request a redemption.
When an investor logs into their account, if they have mutual fund investments, they will be listed in their 'My Account' page. Every line of investment will have a R+ and a R- icon at the end of the line. The R- icon signifies 'Redemption'. If an investor clicks on that link, they will be taken to a page where the redemption can be specified. Alternatively, one can also go to the 'Mutual funds' section and click on 'Redemption' from the left menu to go to the same screen.
Redemptions can be made both partially or fully - that is, the entire investment can be taken out, or only a part of it can be taken out.
A few frequently asked questions about redemption
What mutual fund investments can be redeemed?
Most mutual fund investments are open-ended investments - that is money can be invested or redeemed at any time without restrictions. However, there are some funds which are closed-ended - meaning they can be redeemed only at the end of a tenure. For these funds, redemption requests while they are closed would be turned down. Similarly, investments made in tax-saving funds have a lock-in period of three years. So, any investment made within three years cannot be redeemed.
Is there a charge for redemption?
Redemptions are not subject to any transaction charge. However, in many cases, if the redemption happens one year before the investment is made, mutual fund companies charge an exit load on the redemption. This exit load is typically 1%, but it could be different for different schemes. Please verify with the scheme information document.
How will the money reach the investor?
The money will be transferred directly by the mutual fund company to the investor's bank account. In the rare occasion that the mutual fund company cannot effect an electronic transfer, the AMC will send a cheque to the registered (KYC) address of the investor.