Mutual fund redemption is referred to selling your funds back to the Asset Management Company (AMC) when you need money. You can redeem your mutual fund investments for a number of reasons. For instance, if you have an immediate need for liquidity, you want to invest your money elsewhere, you do not like the performance of the present fund or the fund manager, you are rebalancing your portfolio, or your goals have been fulfilled, among several others.
No matter the cause, here are the steps to redeem your mutual funds online.
Ways to redeem mutual funds online
There are four ways to redeem mutual funds online:
Through the AMC
If you started your SIP (Systematic Investment Plan) or invested in a lump sum with the AMC directly, you can use the company’s portal to redeem your shares. Here are the steps:
- Log in to the AMC’s website using the password and ID given to you at the time of allotment of shares.
- Go to your mutual fund holdings and select the one you want to redeem.
- There will be an option to either sell or buy more. You can choose the option to sell.
- You can choose between partial withdrawal and complete redemption, depending on your requirement and reason for withdrawal.
- You may have to fill out a redemption form. Make sure to fill it with accurate information.
- The money will be credited to your bank account within one to three business days.
Through the broker or the online portal
If you bought your mutual funds online through a broker or an online portal like Tata Capital Moneyfy App, you could redeem your funds on the same portal. Here are the steps:
- Log in to the online portal using your password and ID.
- Go to your mutual fund investments and select the one you want to sell.
- The online portal will forward this request to the AMC.
- Once all formalities have been completed, your funds will be transferred to the bank account linked to your profile within one to three business days.
Through a Demat or trading account
Just like the above two methods, you can also redeem your SIP and lump sum mutual fund investments through your Demat or trading account. You can follow the same steps as given above, and your funds will be credited to your bank account within the stipulated time.
Through agencies like CAMS (Computer Age Management Services) and Karvy
Agencies like CAMS and Karvy are mutual fund Registrar and Transfer Agent companies in India. You can use their websites to redeem your mutual funds too. Here are the steps:
- Visit any of these websites and download the mutual fund redemption form.
- Fill out the form and submit it to the CAMS or Karvy office.
- Your funds will be credited within one to three business days.
This could be a good option if you have a SIP or lump sum investment in multiple mutual funds from different fund houses.
To sum it up
You can redeem your mutual funds online using the simple steps given above. And, if you wish to reinvest your money, you can download the Tata Capital Moneyfy App and check your options.