A mutual fund is a professionally managed company that collects money from many investors and invests it in securities such as stocks, bonds and short-term debt, equity or bond funds and money market funds.
Mutual funds are a good investment for investors looking to diversify their portfolio. Instead of betting everything on one company or sector, a mutual fund invests in different stocks to try to minimize portfolio risk.
The term is typically used in the US, Canada and India, while similar structures around the world include the SICAV in Europe and the open-ended investment firm in the UK.
How long does it take to withdraw my money from mutual funds?
Mutual funds are one of the most liquid assets, that is, it is one of the easiest to convert into cash. To redeem funds through offline mode, the unit holder must submit a signed refund claim form to the designated office of the AMC or registrar. The form requires details such as the name of the drive holder, folio number, scheme name, and number of units to be redeemed. The proceeds of the reimbursement will be credited to the registered bank account of the first holder of the nominated unit.
Mutual funds can also be purchased and redeemed on the website of the relevant fund. Simply log in to the “Online Transaction” page of the desired mutual fund and log in using your Folio number and/or PAN, select the mutual fund scheme and the number of units (or amount) you wish to redeem and confirm the transaction.
In addition, registrars such as CAMS (Computer Age Management Services Pvt. Ltd.), Karvy, etc. offer the possibility to redeem the Mutual Fund purchased from different AMCs. You can download the form online or visit your nearest office. Please note that these agencies may not serve all AMCs.
