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.

Mutual funds redemption Process

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 not clear on how to redeem mutual funds ?

240 CommentsAdd Comment

  1. pragya

    Hello Manish
    I am new to mutual funds.I have a Dmat account with axis bank.I want to know that is it safe to open an account with FUND INDIA to invest in mutual funds or I should invest through axis bank’s Dmat account.Please guide me.
    With regards
    Pragya

  2. Vinod

    Hi Manish,

    I had invested lumpsum amount in MF’s in march 15, but now I want some money and withdraw some partial amount of it. Does it makes some capital gains? If yes, then how it is calculated?

    Thanks,
    Vinod

  3. Abishai

    I invested in SBI contra (regular Growth) mutual fund through SIP mode for 3 yrs from 2009-2011. I stopped my SIP in 2011. The money remained invested in the fund till now. the total value is 4.5 lakhs now. Initially i got these funds through a broker but then I made my online account in SBI MF and got my fund registered. Now I have shifted abroad and want to redeem the fund for my needs. Can i redeem the fund online in one go (all units) or should I split it into small amounts lesser than 1 lakh (as I heard that we have to sign some documents if the investment is above 1 lakhs). This is because I don’t want to come back only for the formalities required and the need is urgent. Please suggest. Thanks

  4. Baagi

    I have invested in SBI MF under tax saving scheme more than 6/7 years back. I would like to know if this is a good time to close/redeem the fund. When is the right to close and what factors should one look at before closing & while closing.

  5. Rahul

    I started ELSS sip from agent in March 2015, but due to clashes I just don’t want to continue with him, shall i close the SIP (is it possible for ELSSS) or shall i transfer it to some other agent

  6. Vishal

    Since 2003 i hv invested in 18 elss funds , in 2008 i had an accident and i was paralysed..due to paralysis my hands are shaking and i can’ t sign documents or anything…now i want to redeem my mutual funds . so is there another way …can u help me out..i hv doctors certificates

  7. ONKAR

    HI MANISH,

    I have invested in mutual fund on SIP base. my question is after completing my SIP scheme which is for 36 moths, can i hold the units as long as i want or is it compulsary for me to redeem those units after 3 years later? and my second question is can i redeem only few units and hold few units e.g. if i have 50 units then can i redeem only 20 units or is it compulsary to redeem full units/nav.

  8. Shadab

    Hi,

    I have invested a lum sum amount in ELSS funds for last fin. year and now i am doing SIP with same AMC in same folio numbers.

    I want to know shall my old investments will also get locked with latest invetment date for a period of 3 years or I can redeem partially those units which came out from its locking periods.

    Regards:
    Shadab

  9. Maria

    Hi Manish,

    I have invested in various MFs like Reliance, HDFC, Kotak etc since 2004. I need to get my KYC done . Do I have to do it individually for all the MFs. Please advise.

    Thanks

  10. Harsha

    Thanks for the helpful clues!

    It is better to have an online login with the MF itself.

    Repositories like CAMS can’t be dependable for urgent needs.

    It is funny that MFs don’t even upgrade our status to major (from under 18) even if their own records show a 30+ age! They asked me get the guardian’s sign! When I informed me that I need a Death Cert (that too in original!) and an endorsement from my bank for my signature!

  11. Vasim Shaikh

    Hi Manish

    I have few queries related to SIP of ELSS

    1) when will the lock in period get over for each month SIP?
    2) which is the best practice to redeem the SIP if I exit and receive each month after 3 years?
    3) how long is it best suited to stay with the SIP to gain maximum tax benefit, if Investment is for purely tax saving purpose only?

  12. Ravish

    Hi Manish,

    I have a query.

    I purchased the mutual funds through an agent. Now i want to redeem them. I know that i can fill up the redemption form from the CAMS office and get it done.

    But, is there a way to redeem the units online?

    Thanks,
    Ravish

  13. Priyokumar Konjengbam

    Dear Sir, Last year I started depositing money every month for Axis mutual fund(gold fund). When I started I signed for 36 months but the sales manager told me that I can withdraw the amount after completion of 1 year. Now I want my money, how can I get it, please help- Priyo

  14. sushma

    I m new in share market. I ve some confusion. In the last month i redeemed HDFC Top 200 dividend MF . The amount also credited to my account. after redemption how the SIP installment has processed in this month

    • Both are two different things .

      Redemption is asking to take out your invested money . But SIP will still continue, you have not closed your account itself. You need to talk to your bank on stopping the SIP mandate.

  15. parnika das

    i want to withdraw money from uti but i have changed my name……..so what shall i do to prove that i am the same person?

    • You must be having the proof of it , right ? I mean when you changed the name, you did that legally ? If not, then you cant do much, because you are not the same person legally !

  16. vasanth

    I have purchased HDFC mutual fund closed ended in june 2014 i need emergency money shall i redeem this mutual fund now, it has over 6 months, i contacted agency office but they are telling we cant redeem this mutual fund upto 3 years it has to locking period of 3 years & it is closed ended mutual fund. anyone suggest about this .

  17. aritra majumdar

    My elder sister had invested 4.5k units in a reliance long term equity fund-dividend option back in 2006 through a broker.
    Sadly she expired in July 2014. We now want to redeem all the units. Can you please advise us as regards the procedure for full redemption physically.

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