Accomplished your saving goal? Seeing your mutual funds' net asset value (NAV) inch up with effervescent markets? Need money to meet certain expenses? Or purely looking to withdraw from your mutual funds savings pool?
For those who invest through an agent, withdrawal – commonly termed as redemption in mutual fund parlance – would be just a signature formality. But even if you have opted for the direct investment route or you wish to redeem on your own, the process is fairly simple.
You will need:
A redemption request form
The fund name
Your folio number
The number of units you hold/ wish to redeem
Before you proceed with the redemption request, you need to ensure that your investments have completed the lock-in period, if applicable. For instance, tax-saving mutual funds have a three-year lock-in.
The redemption request forms can be found online or at the mutual-fund house's office close by. If you want to redeem funds from more than one fund house, it is better to head to the registrar and share transfer agent's (RTA) office – CAMS, Karvy Computershare.
Not all fund houses are serviced by a single registrar, and hence, it is in your interest to find out which is the RTA for your fund house. Your mutual fund communication letters are the quickest place to find the RTA. A phone call to the RTAs or the fund houses' office would be the next best option.
Fill in the basic details including the folio number in the form. Make sure the bank account details mentioned in the form are the same as registered with the fund house. In case of signature mismatches, you will have to seek a signature attestation from your authorised bank.
