One of the biggest advantages of mutual funds is liquidity the ease of converting an investor s units into cash. How to sell shares online.
Contact the brokerage bank or other financial institution you have the account that holds the shares you wish to sell.
How to get money back from mutual fund. You must pay for your share purchase within three business days of the purchase. For liquid funds it takes 1 working day to get back money. The fund s management company hires a portfolio manager for the fund and pays him or her a management fee which often ranges between 0 50 and 2 00 of the fund s assets.
The portfolio manager invests the money raised by the fund according to the predefined strategy laid out in a document called the mutual fund prospectus. To withdraw money from a mutual fund you need to contact the account issuer request to sell some of your shares and state what you want done with the proceeds. You can find their.
There are some instant redemption schemes where you get money immediately. Enter your withdrawal amount wait for the screen that asks you how much you want to withdraw. Mutual funds being regulated by securities and exchange board of india sebi have well laid out norms to ensure liquidity.
Choose the mutual fund you want to redeem. In this article show step1. In the case of a back loaded fund the sales fee usually 5 is not charged when you purchase the fund but if you sell the fund prematurely you will be stuck paying the load.
You will have to report any gains to the irs and pay any associated taxes. Enter amount to redeem. When you purchase a mutual fund you can make your order prior to actually paying for the shares.
Open end schemes which comprise of a large majority of schemes offer liquidity as a major feature. Choose the reason for redeeming. To withdraw money from your mutual fund you will choose the sell option.
For debt funds it takes 2 working days. It takes around 1 3 working days to get money in your bank when you redeem from mutual funds. There should be a drop down.
Mutual fund loads are sales fees and back end loads are a somewhat sneaky way for brokers to sell funds that have loads as no load funds. Time taken to redeem mutual funds. For equity funds it takes 3 working days.
Contact your account issuer contact the firm you hold your mutual fund account with.