Mutual Fund Redemption & Cutoff

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 31^st 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.