Ways to invest and withdraw
What is redemption?
Redemption means selling your mutual fund units back to the scheme at the applicable NAV. The money is paid to your registered bank account.
How it works
You can redeem a number of units or an amount, online or through your distributor. SEBI requires most schemes to pay within 3 working days, and schemes with at least 80% in overseas investments within 5 working days. ELSS units cannot be redeemed during their 3-year lock-in.
Exit loads and tax depend on how long each unit was held.
Example
You redeem 1,000 units when the NAV is ₹45. Before any exit load or tax, ₹45,000 is credited to your bank account within 3 working days.
Keep in mind
- Money always goes to your registered bank account.
- Liquid funds offer instant redemption up to ₹50,000 a day or 90% of the holding, whichever is lower.
Questions people ask
How long does redemption take?
Up to 3 working days for most schemes, 5 for schemes investing at least 80% overseas.
Can I redeem part of my holding?
Yes, by units or by amount.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.