What is Redemption in Mutual Fund Investing?<\/h3>
Redemption in mutual fund investing is basically selling your mutual fund units back to the AMC, and getting the equivalent cash in return, based on the price that applies on the actual day you sell – either partially or in full.<\/p>
How Long Does Mutual Fund Redemption Take Anyway?<\/h3>
It really depends on what sort of fund you have. Liquid funds settle within a day, debt funds settle in two working days, and equity funds take about three working days after you put in your redemption request.<\/p>
What’s the Deal with SIP Redemption Time?<\/h3>
Each SIP instalment has its own little timeline, so to speak. Your cash is usually credited to your account within one to three days after you make the redemption request – but the exit load period for each instalment will still be calculated from the date it was actually purchased.<\/p>
Can I Redeem My Mutual Fund Any Time I Want?<\/h3>
Yes, open-ended mutual funds can be redeemed at any point in time. But if you’re thinking of redeeming from an ELSS fund, you’re going to have to wait three years for the lock in period to expire – and if you do it before then, you might get hit with an exit load from another fund.<\/p>
How Do I Go About Reducing my Mutual Funds Online?<\/h3>
You just log in to your mutual fund account, pick the fund, choose the amount you want to redeem, double check all your details. Then, just follow the prompts, enter your OTP, and the money will get credited to your bank account within the standard timeframe set by SEBI.<\/p>
Is Mutual Fund Redemption Taxable?<\/h3>
Yep, it is. Equity fund gains that haven’t been held for a year will get taxed at 20% – short-term capital gains. And if you are holding equity fund gains for more than a year but over 1.25 lakh in value, then you will be taxed at 12.5% – long-term capital gains. Debt fund gains are taxed based on your income tax rate.<\/p>
What Time is the Cut-Off for Mutual Fund Redemption?<\/h3>
For most funds, it’s 3:00 PM on any given business day. That way, if you place a request before then, you’ll get the price that applies that day – but if you place it after that, the price will be for the next business day.<\/p><\/ul><\/div>\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Most investors spend ages trying to work out where to put their cash, but only a tiny handful of them think about how to get it back – until of course they actually need it. That’s where redemption in mutual fund investing comes in. Whether you’re taking out cash to hit a goal, to cover […]<\/p>\n","protected":false},"author":10,"featured_media":28458,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-28452","mutual-funds","type-mutual-funds","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds"],"acf":{"freelancer":"Harjyot"},"yoast_head":"\n
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