How to redeem mutual funds units – Procedure and Forms to fill ?
Most of the people investing in mutual funds through agent offline have this question – “How to redeem mutual funds ?”. mutual funds investors often do not know what the procedure to redeem these mutual funds. I redeemed some of my ELSS mutual funds (HDFC tax saver , Sundaram Taxsaver, HDFC long term advantage Fund and SBI magnum taxgain fund) which I had bought some years back from an agent, so I thought why not let everyone know what is the simple procedure for redeeming the mutual funds.
Process to redeem Mutual Funds
if you have bought the mutual funds from an agent or from the AMC directly, then you will have to fill up the mutual fund redemption form. This form is available from the mutual funds AMC office (you can get its office address from internet). You will have to go to their office in person. You can also go to the nearest CAMS office and fill up the mutual fund redemption form directly from there. It’s much convenient to visit CAMS office and directly redeem more than one mutual funds in one go (this is what I did in my case).
The redemption form is very easy to fill and all you need to put is your name, folio number (make sure you put correct folio number, else it will create issue later) and the number of units (exact number or ALL) you want to redeem. Just give this form to the CAMS processing assistant and they will put up your request.
Important Points
1. NAV Applicable: If you give your redemption request before 3:00 pm, the same day closing NAV will be applicable, else you will get next day NAV. So make sure you do the redemption well before 3:00 pm if you want same day NAV.
2. Bank accounts: Where will you get the money when you redeem the mutual funds? You will get the proceeds in your same account which is registered with your AMC (which you used to pay at the time of buying). If that account is not active, then there are few run around like you will have to attach the cancelled cheque of your new bank account or copy of pass-book etc and if you don’t have that, then a declaration from the bank and sign of some bank manager etc. So this can be a little frustrating if you are in urgent need of money. In my case my old account was active so it was pretty easy for me.
3. CAMS do not handle all the AMC’s redemption: CAMS do not handle each and every Mutual funds transaction. It can happen that you will have to go to the AMC office itself for redemption. Like in my case I had to go to Sundaram AMC office to redeem my Sundaram Tax Saver proceeds. So check with CAMS which all mutual funds they handle, you can shoot an email to your city CAMS (their emails and addresses are there on CAMS website
4. How much time it takes to get money? : It generally takes 3-4 working days to get the money credited in your account. But in my case I got it in next 2 days itself. So if you redeem the funds on Monday or Tuesday, you can safely assume that you will get the money by the weekend. But if you have weekend falling in between, then it can take some time.
Process of redemption if have bought Mutual funds online
If you bought your mutual funds from your demat account or some online brokers or if you activated your online account after buying from agent, then you can redeem your mutual funds online itself just by following the procedure mentioned by your online account. Most of the people who buy tax saving mutual funds (ELSS funds) online can also redeem tax saver mutual funds online only.
Did you activate your online account with the AMC ?
If not, I would suggest you to do it, so that you can take the redemption action as and when required. What was your redemption of mutual funds experience? What point’s people should keep in mind while redeeming? I hope you are now clear on how to redeem mutual funds ?
Thanks Manish, this is a useful piece of info.
Is it mandatory to redeem units after completion of SIP?
No , you can keep it
I hv 5 sip which i bought 6 months before but inspite of ELSS the agent sugested me to invest in not tax benefit funds …now i dont want to continue this i wana go for elss only so may i withraw this before 1 yr …with exit load of 1%
i have hdfc tax saver mutual fund.i have 277 units but they are allowing me to redeem only 62 units..why so any idea?
Because I think only those units are out of 3 yrs of lockin period . Note that every time you invest in ELSS, each time its locked for 36 months.
one of my friend invested MF (sip) in sbi for 5 years so after completion of 5 years he withdrawl then he received only one year amount and he was asked that he will get the 2nd year amount in 6th year, 3rd year amount in 7th year. I was shocked they havenot given as per NAV value.
how they calculate on SIP why they do like this what are the rules of SBI especially where as in other they dont have this rules.
I requests you to help me.
yes, if the fund is ELSS or tax benefit fund
MOre details are required for this case. Did he check for the reason why SBI did like that ?
Thanks a lot. This info helped me a lot.
i have purchase mutual funds online in sbi.How to withdraw my money ONLINE.
You can do that from their portal ..
IPurchase Tata balancedfund through cams app after 3 days when doing redemption it says amount insufficient I contacted cams care they says it take 3 -4 working days but not solved yet plz guid
Hi Sandeep
This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that
Manish
Good info
Very useful information.
Regards,
Sarika
Useful information. Thanks, Sarika
Hi Manish, I have transferred money to online MF distributor before end & my KYC got failed. In that case whether any time lines by which i should get back this money from the distributor.
Please suggest.
Amul
There is no standard rules on this, but generally it takes 7-10 days max
Having invested in mutual funds online, I was lost as to the process of redeeming them. The normal process of physically submitting the redemption form is very simple but redeeming the funds online is a time-saving process and you are notified when your account gets credited.
Thanks for sharing that RajivPathak
Hello Manish, Is there an expiry date for redemption of MF? Eg: UTI MF bought in 2008, can I redeem now?
Thanks
There is nothing like that. U can redeem anytime you want !
Hi Manish,
i have 3 sip -1000 per sip.
but i have dought for Icici Focused bluechip Growth is sip give mi good return or not otherwise i can switch other icici sip plan.which plan is good if switch
I have ICICI PRUDENTIAL CAPITAL PROTECTION ORIENTED FUND SERIES VIII – 1115 DAYS PLAN F – CUMULATIVE and I want to come out of it prematurely.
Is there a way to encash it with or without penalty or any way ?
If its open ended,only then you can redeem , else only on maturity
Is KYC essential for redemption of old mutual fund units eg units purchased before 2008
Yes
Hi,
I am new to the SIP world. So, I would like to know that how does it works and what will be the return after investing for 2000 for 12 months.
Thanks You
Hi Jaspreet
There is no guaranteed return like this in mutual funds, especially 12 months period. If you are interested in starting SIP, you can let me know, my team will assist you on that
Manish
Hi
I have a SIP in Reliance Tax Saver Fund w.e.f April 2011, and since last 6 months the SIP is not deducting,
Can is request for a complete redemption, please advice
It might happen that your SIP period is over now . YOu cant redeem it all in once .. because each unit would be locked in for 3 yrs !
I purchased a Birla Sun Life Gold-Plus II Plan Maximiser. investing 1000000 +10000+ 10000 total 1.2 lakh for 8 years, what is my return as of january 14 2016,
Hi mathew
The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information
Manish