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. My Supervisor wants to redeemed some of his ELSS mutual funds (HDFC tax saver , Sundaram Taxsaver, HDFC long term advantage Fund and SBI magnum taxgain fund) which he had bought some years back from an agent, but he is all confused and unaware of this procedure.So I helped him out in redemption procedure.So I thought why not let everyone know what is the simple procedure for redeeming the mutual funds by writing a blog on it.
So here is my article putting light on How to redeem Mutual Funds .
Mutual funds Redemption Process
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.
1. NAV Applicable: If you give your redemption request before , the same day closing NAV will be applicable, else you will get next day NAV. So make sure you do the redemption well before 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 or , 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.
For more quality information on Online redemeption of MFs... visit my upcoming blogs.
Aruna Sharma [ MBA HR ]
Aruna Sharma [ MBA HR ]