How to redeem mutual fund units in a hassle-free way?

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.

As mutual fund investments are linked to the equity or the money market, you need to follow the clock if you wish to make the most of the positive equity or debt market movement during the day. A request submitted prior to 3 pm would attract the same day's net asset value (NAV), while those submitted post 3 pm would be calculated on the next day's NAV.

With the advent of technology, today online redemptions are also possible. If you have activated your online mutual fund account, then the redemptions are no sweat.

For those who haven't activated the online account with your fund house, many offer immediate access for existing investors using details such as Folio number, PAN and email address. Once you gain access to the online account, then you just need to select the scheme from which you need to withdraw and the number of units you wish to sell.

Today there are mobile applications that help you withdraw with just a tap on your phone. Select fund houses offer SMS and Whatsapp redemption request facility too. For redemptions across fund houses, you can use mobile apps offered by Registrars and Transfer Agents such as myCAMS, KTrack offered by Karvy Computershare.

Once the request is submitted, your mutual fund redemption amount would be in your registered bank account within two to three working days. The amount deposited in the account would be less of exit load, if applicable and tax deducted at source (TDS) for non-resident customers.

To avoid any delay in the funds being credited – especially while redeeming long-held investments – check whether the registered bank account number is operational as the funds would be directly credited to the account through which the investments were made, unless specified with supporting documents.

A new form would be required to be submitted to make changes to the registered bank account. When you are requesting for a new bank account, then avoid any mistakes in the bank account number, IFSC Code, and branch address.

As important as updating your mobile numbers is to update the communication details as updates and status of your redemption request would be sent to the mobile number and the email address that the fund house has been supplied.