How long does it take to receive redemption proceeds?
When you redeem (sell) a mutual fund, the time it takes to get your money depends on the type of fund. Here’s how long it typically takes:
- Liquid Funds: You’ll receive your money in 1 working day [Transaction Day plus 1 day (T+1)]
- Debt Funds: The money will reach your bank in 1 working day [Transaction Day plus 1 day (T+1)]
- Equity Funds: It will take two working days [Transaction Day plus 2 days (T+2)].
- Hybrid Funds: It will take two working days [Transaction Day plus 2 days (T+2)].
- International Funds: These can take up to 5 working days [Transaction Day plus 5 days (T+5)]
(T is the date the order was approved.)
If you place your order before 3 PM on a working day, the time mentioned above applies. The system treats orders placed after 3 PM as transactions for the next working day. Keep in mind that weekends and holidays don’t count as working days and may delay the process.
The mutual fund company will credit your money directly to the bank account which you provided during sign-up. Understanding the timeline for receiving redemption proceeds is essential for planning your investments effectively. For goal-based investing and financial planning services, connect with a trusted Mutual Fund advisor in Pune or Mutual fund distributor in India. Leverage wealth creation strategies to ensure you’re on track with your financial goals.
