The decision to redeem MF units depends on financial goals, investment performance, and personal circumstances.
Emotional reactions may lead to selling at the wrong time, locking in losses, and missing out on potential recovery when the market rebounds.
Some mutual funds may have exit loads or redemption fees, especially if the units are redeemed before a specified holding period. It is better to check the scheme-related documents on applicable charges.
The time taken to process and settle MF redemptions generally takes two working days.
Investor can redeem a partial number of units or all units as per redemption request.
Redemption of mutual fund units should be registered with the concerned mutual fund house before 3 pm if investor wants to avail current day’s NAV.
Redemption of mutual fund is a very significant step for the investor similar to taking investment decision.
