Now advisers can help their clients redeem MF investments instantly

Fund houses are redefining liquidity. So far, investors had to wait for a day to get their money if they redeemed from liquid funds (if they place redemption request before the cut off time). Also, if investors place a redemption request on non-business day, say Saturday, the investor would only get the redemption proceeds on Tuesday. This can be a frustrating experience for someone who needs money urgently.

With the launch of instant redemption facility, investors can now get their redemption proceeds in their bank accounts within a few minutes any day 24x7. Earlier in July, Reliance Mutual Fund has launched an instant redemption facility in its Reliance Money Manager Fund, an open ended income fund. The fund house claims that it will credit the money in investors’ bank account in a maximum of 30 minutes any time of the day, 365 days a year. To use this facility, Reliance MF investors bank should be Immediate Payment Service (IMPS) enabled and their Complete CBS (Core Banking System) account number should be registered in the folio along with IFSC code.

“When we interacted with investors, we came to know that a large chunk of their savings lie in savings account which earns just 4% returns. While investors are conscious of returns their main concern is liquidity. They want to access money 24x7 at their will. This insight got us thinking how we can offer instant liquidity to our investors,” said Himanshu Vyapak, Deputy CEO, Reliance MF in an earlier interview with Cafemutual.

Now, DSP BlackRock AMC too offers instant redemption facility. Currently, this facility is available in DSP BlackRock Money Manager Fund. Investors can withdraw a minimum of Rs. 100 a day and redeem up to 95% of their investment or up to Rs.2 lakh per day.

In case of DSP BlackRock, when investors reach out to advisors for redemption, they can create instant redemption request through DSP Blackrock’s IFAXpress platform and send the transaction on client’s email or mobile for confirmation. After entering the OTP, money is transferred to the client’s account within 30 minutes.