Redemption is a process wherein an investor sells the units back to the mutual fund.
Types of redemption:
- Full redemption
- Partial redemption
Redemption can be submitted along with change of bank; however, the payout will be processed with cooling period of 10 days. In case investors confirms the redemption has been submitted with change of bank by email or at call centre, we can release the payout as per the TAT (Turnaround Time) or whenever the confirmation is received.
Redemption payments can be processed through following modes:
- RTGS
- NEFT
- Physical warrants (Cheques/Pay order)
Cutoff & payout TAT
All schemes have cut-off of 3.00 pm of any business days.
Redemption- Equity funds
| Transaction | Banks | NAV | Payout |
| Before cutoff | Holiday | Same day | As per TAT |
| Before cutoff | No Holiday | Same day | As per TAT |
Redemption- Debt funds
| Transaction | Banks | NAV | Payout |
| Before cutoff | Holiday | Next business day | As per TAT |
| Before cutoff | No Holiday | Same day | As per TAT** |
**For liquid and Overnight funds:
Redemptions received on a day followed by non-business day, the closing NAV of the day immediately preceding the next Business Day is applied. Example, for redemptions reported on Friday, NAV of Sunday is applied. In case Monday is also a holiday, then NAV of Monday will be applicable for the transaction and payout will be done on Tuesday.
Payout TAT:
| Scheme category | Payout TAT
(business days) |
| Debt Fund | T+1 |
| Liquid Fund | T+1 |
| Equity Fund | T+2 |
| Fund of Funds (Domestic – Bharat Bond FOFs) | T+2 |
| Fund of Funds investing overseas | T+5 |
Dos and don’ts
- Ensure folio number to be mentioned correctly.
- Check scheme name and cutoff time before submission of request.
- Signature should match with signature of initial purchase application.
- Check for applicable exit load if any.
Grandfathering effect
- Applicable with effect from 31st January 2018 only for equity shares and equity oriented mutual funds.
- Purchase and sale before 31/01/2018: Exempt under Sec 10(38).
- Purchase before 31/01/2018 and Sale after 31/01/2018 but before 01/04/2018: Exempt under Sec 10(38).
- Purchase before 31/01/2018 but sale on or after 01/04/2018: LTCG taxable on gains accrued before 31/01/2018.
- Purchase after 31/01/2018 and Sale on or after 01/04/2018: LTCG taxable.
2 comments
Prakash kadam
May 11, 2024 at 8:10 am
Ok
Bhavesh parmar
May 11, 2024 at 9:55 am
Need to know about redemption, exactly when so we can save our profit and again same amt purchase at lower na price?