Mutual Funds, being regulated by SEBI, have laid out norms to ensure liquidity.
Open-end schemes, which comprise a large majority of schemes, offer liquidity as a major feature.
Liquidity is the ease of access or conversion of an asset into cash.
Once the redemption is complete, funds are transferred to the designated bank account of the investor, within 3-7 business days after the redemption was lodged.
Log on to the ‘Online Transaction’ page of the desired Mutual Fund and log in using your Folio Number and/or the PAN Select the Scheme and the number of units (or the amount) you wish to redeem and confirm your transaction.
In addition, central service providers like CAMS, Karvy, etc. offer the option of redeeming mutual funds bought from several AMCs. You can download the form online or visit the nearest office. Please note that these agencies might not service all the AMCs.
The unit holder needs to submit a duly signed Redemption Request form to the AMC or the Registrar’s designated office. In the redemption form, one needs to fill in the details.
In addition, all the holders have to sign the Redemption form. The proceeds from the redemption will be credited to the registered bank account of the first named unit holder.