How to redeem mutual funds units – Procedure and Forms to fill ?

POSTED BY Jagoinvestor ON September 15, 2011 COMMENTS (301)

Most of the people investing in mutual funds through agent offline have this question – “How to redeem mutual funds ?”.  mutual funds investors often do not know what the procedure to redeem these mutual funds. I redeemed some of my ELSS mutual funds (HDFC tax saver , Sundaram Taxsaver, HDFC long term advantage Fund and SBI magnum taxgain fund) which I had bought some years back from an agent, so I thought why not let everyone know what is the simple procedure for redeeming the mutual funds.

Mutual funds redemption Process

Process to redeem Mutual Funds

if you have bought the mutual funds from an agent or from the AMC directly, then you will have to fill up the mutual fund redemption form. This form is available from the mutual funds AMC office (you can get its office address from internet). You will have to go to their office in person. You can also go to the nearest CAMS office and fill up the mutual fund redemption form directly from there.  It’s much convenient to visit CAMS office and directly redeem more than one mutual funds in one go (this is what I did in my case).

The redemption form is very easy to fill and all you need to put is your name, folio number (make sure you put correct folio number, else it will create issue later) and the number of units (exact number or ALL) you want to redeem. Just give this form to the CAMS processing assistant and they will put up your request.

Important Points

1. NAV Applicable: If you give your redemption request before 3:00 pm, the same day closing NAV will be applicable, else you will get next day NAV. So make sure you do the redemption well before 3:00 pm if you want same day NAV.

2. Bank accounts: Where will you get the money when you redeem the mutual funds? You will get the proceeds in your same account which is registered with your AMC (which you used to pay at the time of buying). If that account is not active, then there are few run around like you will have to attach the cancelled cheque of your new bank account or copy of pass-book etc and if you don’t have that, then a declaration from the bank and sign of some bank manager etc. So this can be a little frustrating if you are in urgent need of money. In my case my old account was active so it was pretty easy for me.

3. CAMS do not handle all the AMC’s redemption: CAMS do not handle each and every Mutual funds transaction. It can happen that you will have to go to the AMC office itself for redemption. Like in my case I had to go to Sundaram AMC office to redeem my Sundaram Tax Saver proceeds. So check with CAMS which all mutual funds they handle, you can shoot an email to your city CAMS (their emails and addresses are there on CAMS website

4. How much time it takes to get money? : It generally takes 3-4 working days to get the money credited in your account. But in my case I got it in next 2 days itself. So if you redeem the funds on Monday or Tuesday, you can safely assume that you will get the money by the weekend. But if you have weekend falling in between, then it can take some time.

Process of redemption if have bought Mutual funds online

If you bought your mutual funds from your demat account or some online brokers or if you activated your online account after buying from agent, then you can redeem your mutual funds online itself just by following the procedure mentioned by your online account. Most of the people who buy tax saving mutual funds (ELSS funds) online can also redeem tax saver mutual funds online only.

Did you activate your online account with the AMC ?

If not, I would suggest you to do it, so that you can take the redemption action as and when required. What was your redemption of mutual funds experience? What point’s people should keep in mind while redeeming? I hope you are now clear on how to redeem mutual funds ?

301 replies on this article “How to redeem mutual funds units – Procedure and Forms to fill ?”

  1. Abhi says:

    Thanks Manish, this is a useful piece of info.

  2. Vijay says:

    Is it mandatory to redeem units after completion of SIP?

    1. No , you can keep it

  3. jay says:

    I hv 5 sip which i bought 6 months before but inspite of ELSS the agent sugested me to invest in not tax benefit funds …now i dont want to continue this i wana go for elss only so may i withraw this before 1 yr …with exit load of 1%

  4. Roshan says:

    i have hdfc tax saver mutual fund.i have 277 units but they are allowing me to redeem only 62 units..why so any idea?

    1. Because I think only those units are out of 3 yrs of lockin period . Note that every time you invest in ELSS, each time its locked for 36 months.

  5. one of my friend invested MF (sip) in sbi for 5 years so after completion of 5 years he withdrawl then he received only one year amount and he was asked that he will get the 2nd year amount in 6th year, 3rd year amount in 7th year. I was shocked they havenot given as per NAV value.

    how they calculate on SIP why they do like this what are the rules of SBI especially where as in other they dont have this rules.

    I requests you to help me.

    1. rajeshprasad says:

      yes, if the fund is ELSS or tax benefit fund

    2. MOre details are required for this case. Did he check for the reason why SBI did like that ?

  6. Srinvias says:

    Thanks a lot. This info helped me a lot.

  7. PRIYA says:

    i have purchase mutual funds online in sbi.How to withdraw my money ONLINE.

    1. You can do that from their portal ..

  8. Sandeep says:

    IPurchase Tata balancedfund through cams app after 3 days when doing redemption it says amount insufficient I contacted cams care they says it take 3 -4 working days but not solved yet plz guid

    1. Hi Sandeep

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  9. Raja says:

    Good info

  10. Sarika says:

    Very useful information.


  11. Sarika says:

    Useful information. Thanks, Sarika

  12. Amul says:

    Hi Manish, I have transferred money to online MF distributor before end & my KYC got failed. In that case whether any time lines by which i should get back this money from the distributor.

    Please suggest.

    1. There is no standard rules on this, but generally it takes 7-10 days max

  13. RajivPathak says:

    Having invested in mutual funds online, I was lost as to the process of redeeming them. The normal process of physically submitting the redemption form is very simple but redeeming the funds online is a time-saving process and you are notified when your account gets credited.

    1. Thanks for sharing that RajivPathak

  14. MILY says:

    Hello Manish, Is there an expiry date for redemption of MF? Eg: UTI MF bought in 2008, can I redeem now?

    1. There is nothing like that. U can redeem anytime you want !

  15. uday says:

    Hi Manish,

    i have 3 sip -1000 per sip.

    but i have dought for Icici Focused bluechip Growth is sip give mi good return or not otherwise i can switch other icici sip plan.which plan is good if switch

  16. Vivek says:


    Is there a way to encash it with or without penalty or any way ?

    1. If its open ended,only then you can redeem , else only on maturity

  17. Ashok says:

    Is KYC essential for redemption of old mutual fund units eg units purchased before 2008

  18. JaspreetSingh says:


    I am new to the SIP world. So, I would like to know that how does it works and what will be the return after investing for 2000 for 12 months.

    Thanks You

    1. Hi Jaspreet

      There is no guaranteed return like this in mutual funds, especially 12 months period. If you are interested in starting SIP, you can let me know, my team will assist you on that


  19. Sumith says:

    I have a SIP in Reliance Tax Saver Fund w.e.f April 2011, and since last 6 months the SIP is not deducting,

    Can is request for a complete redemption, please advice

    1. It might happen that your SIP period is over now . YOu cant redeem it all in once .. because each unit would be locked in for 3 yrs !

  20. mathew says:

    I purchased a Birla Sun Life Gold-Plus II Plan Maximiser. investing 1000000 +10000+ 10000 total 1.2 lakh for 8 years, what is my return as of january 14 2016,

    1. Hi mathew

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information


  21. Aditya says:

    Thank you Sir

  22. Ramesh says:

    Useful information. Thanks, Ramesh

  23. aditya says:

    sir i invested in hdfc tax saver growth fund sip per month of 5000 for 15 years from june 2014. total invest is till date 85000/- can i partially redem 20000/- from it….

    1. No you cant . It must be in the lock in period right now

  24. aditya says:

    If I have invested through SIP in mutual fund. Suppose 100 units have been purchases over the three years. If i redeem 30 units (partial). How will I know that these 30 units pertains to 1st year and do have tax liability?

    1. Its always considered as FIFO method. So dont worry they will figure out !

  25. aditya says:

    Thank you sir for guidance

  26. Aditya says:

    Thank you Sir for quick reply. My SIP amount was Rs 5000/- p.m. in first year in HDFC MF, and it increased Rs 1000/- annually i.e. it was Rs 6000/- in second year and Rs7000/- in third year. Which amount will be filled in SIP Cancelletation form of HDFC.

    1. Put the latest amount.

  27. Aditya says:

    I am investing through SIP since March 2013 and still continuing. I want to stop it from December 2015 and withdraw the amount. (i) When should I withdraw the entire amount so that there is no income tax. (ii) Can I withdraw partial amount after stopping the SIP and upto which period so that there is no income tax. I am salaried person

    1. You can withdraw everything after 1 yr of stopping SIP . If its an equity fund, there wont be any income tax on the gains (if any)

  28. Rajat says:

    Lets say, my sip is for 3 years. Is it possible to withdraw partial amount after couple of months, if the scheme is open type?

    1. If its not having lockin period, then you can redeem the money anytime

  29. Pranab says:

    Dear Manish,
    a very informative article, but I think you might have misspelled the last line of the article !!
    “I hope you are not clear on how to redeem mutual funds ?”

    Anyway thanks for the information.

    1. I have corrected that Pranab

  30. basant says:

    I put for redemption my sip ,and account registered in the folio is savings but actualy it is nre acount and now they still not have credit my redemption amount to my account.
    Any suggestion what to do.

    1. You should talk to your mutual funds for this .

  31. Roshan says:

    Sir please tell me how to creat online ac of MF

    1. You can do it via mutual fund website

  32. Sangeetha says:

    Dear Sir,

    I am holding a demat account,but not having trading account.have some mutual fund holdings.Want to sell it.Without opening trading account let me know the proceedure for redemption.

    1. You can just visit the demat company (ICICI Direct for example) and fill up the redeemption slip. THe redeemption will happen

  33. pragya says:

    Hello Manish
    I am new to mutual funds.I have a Dmat account with axis bank.I want to know that is it safe to open an account with FUND INDIA to invest in mutual funds or I should invest through axis bank’s Dmat account.Please guide me.
    With regards

    1. You can invest from any of portals , Both are safe

  34. Vinod says:

    Hi Manish,

    I had invested lumpsum amount in MF’s in march 15, but now I want some money and withdraw some partial amount of it. Does it makes some capital gains? If yes, then how it is calculated?


    1. If its equity fund, then you will pay short term capital gains of 15%

  35. Abishai says:

    I invested in SBI contra (regular Growth) mutual fund through SIP mode for 3 yrs from 2009-2011. I stopped my SIP in 2011. The money remained invested in the fund till now. the total value is 4.5 lakhs now. Initially i got these funds through a broker but then I made my online account in SBI MF and got my fund registered. Now I have shifted abroad and want to redeem the fund for my needs. Can i redeem the fund online in one go (all units) or should I split it into small amounts lesser than 1 lakh (as I heard that we have to sign some documents if the investment is above 1 lakhs). This is because I don’t want to come back only for the formalities required and the need is urgent. Please suggest. Thanks

    1. You can withdraw all units in one go . There is no sign required if you already have online account

  36. Baagi says:

    I have invested in SBI MF under tax saving scheme more than 6/7 years back. I would like to know if this is a good time to close/redeem the fund. When is the right to close and what factors should one look at before closing & while closing.

    1. You can close them with any taxation now . But do it only if you need the money !

      1. Baagi says:

        Thanks Manish for the response. Is their a right/ideal time for one to close them. How long can I keep them open. What factors should one look at before closing?

        1. There is no ideal time . You can redeem them in case when you either need it badly, or want to book profits !

  37. Rahul says:

    I started ELSS sip from agent in March 2015, but due to clashes I just don’t want to continue with him, shall i close the SIP (is it possible for ELSSS) or shall i transfer it to some other agent

    1. You can move your units to a direct plan if you wish ! ..

      1. sagar says:

        If i move from regular to direct plan or if i redeem my MF Plan. will my Agent get to know about this?
        have a good term with the agent and dont want to spoil personal relationship

        1. Yes, he will come to know.

  38. Vishal says:

    Since 2003 i hv invested in 18 elss funds , in 2008 i had an accident and i was paralysed..due to paralysis my hands are shaking and i can’ t sign documents or anything…now i want to redeem my mutual funds . so is there another way …can u help me out..i hv doctors certificates

    1. Yes, but you should first take doctors certificate, then contact hte mutual fund companies

  39. ONKAR says:


    I have invested in mutual fund on SIP base. my question is after completing my SIP scheme which is for 36 moths, can i hold the units as long as i want or is it compulsary for me to redeem those units after 3 years later? and my second question is can i redeem only few units and hold few units e.g. if i have 50 units then can i redeem only 20 units or is it compulsary to redeem full units/nav.

  40. Shadab says:


    I have invested a lum sum amount in ELSS funds for last fin. year and now i am doing SIP with same AMC in same folio numbers.

    I want to know shall my old investments will also get locked with latest invetment date for a period of 3 years or I can redeem partially those units which came out from its locking periods.


    1. YOu can fully redeem those units which are 3 yr old 🙂

      1. Shadab says:

        Thanks Manish

  41. Maria says:

    Hi Manish,

    I have invested in various MFs like Reliance, HDFC, Kotak etc since 2004. I need to get my KYC done . Do I have to do it individually for all the MFs. Please advise.


    1. No , you just need to do KYC once . Its not for each fund !

      1. Maria says:

        Thanks Manish…that’s a relief to know. Could you please let me know how to get it done.

        Appreciate your help!

        1. Just visit any CAMS office in your city and ask them that you want to update your KYC, they will help you on that !

  42. Harsha says:

    Thanks for the helpful clues!

    It is better to have an online login with the MF itself.

    Repositories like CAMS can’t be dependable for urgent needs.

    It is funny that MFs don’t even upgrade our status to major (from under 18) even if their own records show a 30+ age! They asked me get the guardian’s sign! When I informed me that I need a Death Cert (that too in original!) and an endorsement from my bank for my signature!

    1. Hey Harsha

      Thanks for sharing your experience with all of us. It was a great learning.


  43. Maya says:

    I am ready to take risk which MF to invest to get an maximum profit

    1. You can go with HDFC Midcap opportunities in that case !


  44. Vasim Shaikh says:

    Hi Manish

    I have few queries related to SIP of ELSS

    1) when will the lock in period get over for each month SIP?
    2) which is the best practice to redeem the SIP if I exit and receive each month after 3 years?
    3) how long is it best suited to stay with the SIP to gain maximum tax benefit, if Investment is for purely tax saving purpose only?

    1. 1. If it’s a ELSS fund, then after 36 months
      2. Depends . You can either redeem each SIP separately or all of them if they are available
      3. Long term for 5-10 yrs

  45. Ravish says:

    Hi Manish,

    I have a query.

    I purchased the mutual funds through an agent. Now i want to redeem them. I know that i can fill up the redemption form from the CAMS office and get it done.

    But, is there a way to redeem the units online?


    1. Ravish

      No you cant redeem them online, if you didnt buy it online . or unless you have a online account with the AMC . You need to give it in CAMS or AMC Office !

  46. Priyokumar Konjengbam says:

    Dear Sir, Last year I started depositing money every month for Axis mutual fund(gold fund). When I started I signed for 36 months but the sales manager told me that I can withdraw the amount after completion of 1 year. Now I want my money, how can I get it, please help- Priyo

    1. Go to CAMS office and just fill up the redemption form . They will help you out !

  47. sushma says:

    I m new in share market. I ve some confusion. In the last month i redeemed HDFC Top 200 dividend MF . The amount also credited to my account. after redemption how the SIP installment has processed in this month

    1. Both are two different things .

      Redemption is asking to take out your invested money . But SIP will still continue, you have not closed your account itself. You need to talk to your bank on stopping the SIP mandate.

  48. parnika das says:

    i want to withdraw money from uti but i have changed my name…… what shall i do to prove that i am the same person?

    1. You must be having the proof of it , right ? I mean when you changed the name, you did that legally ? If not, then you cant do much, because you are not the same person legally !

  49. vasanth says:

    I have purchased HDFC mutual fund closed ended in june 2014 i need emergency money shall i redeem this mutual fund now, it has over 6 months, i contacted agency office but they are telling we cant redeem this mutual fund upto 3 years it has to locking period of 3 years & it is closed ended mutual fund. anyone suggest about this .

    1. Yes, it cant be redeemed . If you want to redeem it you will have to pay your taxes which you saved because of this .


      1. Anand says:

        Hi, Manish, I read all this conversation, I must thank you for all this info. I have a question regarding Closed end fund. I had purchased SBI Equity Opportunities Fund – Series 2 since last 1 year and actually I missed the point at the time of investment that it is with 3 year lock-in period. Now I need that money to invest somewhere else as this fund is giving only 3% which is not acceptable by any means.

        So What I will loose if I insist my agent to redeem it ?

        1. Anand

          YOu need to understand that its a close ended fund and mostly you will not be able to redeem it before the maturity date, but anyways ckeck with your agent on this.

          Regarding fund return note that its a equity fund and its returns are linked to markets, so its not that the fund gives the return of 3% , but just the last year return is 3% . It might happen that if you stay for long in this fund, you will get a good return .

  50. aritra majumdar says:

    My elder sister had invested 4.5k units in a reliance long term equity fund-dividend option back in 2006 through a broker.
    Sadly she expired in July 2014. We now want to redeem all the units. Can you please advise us as regards the procedure for full redemption physically.

  51. Nidhi Ojha says:

    Hello Manish,

    My uncle has some SBI Mutual Funds with some other shares, which he had bought in 1992-93. He wants to redeem them.Please guide us how to redeem that?
    What is the procedure we should follow?

    1. The first step is to make them demat , once its done, then you can sell them !

  52. Neeraj Y. says:

    Hi Manish,

    I had purchased HSBC MF (Tax Saver Equity Fund – Growth) in 2007. I, now, want to redeem all my units of it.

    Over this period, my mobile number registered with this MF has changed in 2010, but the correspondence address and email id are still intact. Therefore, I need to know whether I can simply visit the local CAMS office with the duly filled redemption form or will the change in mobile number cause any hindrance in the redemption process.

    Thanks & Regards,
    Neeraj Y.

    1. No there will be no issues, but your bank is same which you used to invest or has that also changed ? If not, then you can go ahead !

  53. vivek says:

    SIP instalment is over last month. NAV applicable is as per day of redemption or as per NAV on day of last SIP installation ???

    1. As on the day of redemption !

  54. vivek says:

    SIP instalment is over last month. NAV applicable is the for day of redemption or as per day of last SIP installation ???

  55. praveen says:

    it was helpful bro ! but still i have a doubt …. will it require a demat acc for me to invest in mutual funds ? and it would be very much thankful if u can guide me in investments as i am just 18yr old … newayz thanks bro ! 🙂

    1. You dont need demat for that


    I had 20,000 Units of Axis bank mutual fund (equity – growth).

    I applied for redemption of 4000 Units on 7th Sep 2014 and got confirmation e mail for accepting redemption within hours.

    However, money has not been transferred to my account even after 4 weeks and I kept on sending mails to remind.

    After one month I got a mail stating that IFSC code of the branch of my bank was not found in my application (which i made in 2010) and hence settlement will be through cheque.

    I thought this was merely an excuse as my money was not being settled. Again wrote to Customer care desk and got response that the settlement has been couriered. The mail included detail of Professional courier details.

    However the courier did not reach me in one week and I tried to trace the mail in online tracking facility of Professional courier. I was surprised to see that the tracking number does not belong to Professional courier.

    I sincerely believe that Axis bank mutual fund is fraudulently delaying my settlement.

    Again I opted for 16,000 more Units on 27th Sep 2014 and got confirmation mail for accepting redmption. But money not settled yet.

    Does any one have similar experience ? – Please share and also suggest me ways to tackle this problem.

    Thanks / Best regards,

    1. Sad to hear that experience. This is deficiency in service from Axis Bank . I think you should strictly tell them once that you are going to SEBI if they dont treat you properly in next 7 days !


  57. Surendra Sahai Saxena says:

    Dear sir,
    I am holding units of UTI-INFRASTRUCTURE FUND-GROWTH as per Folio No.515231903947.I am about 80years and wish to windup my holding.I am residing in Govindnagar area (Kanpur South) and wish to submit my redemption form in the nearby office,as the whereabout of agent from whom I got purchased these units is not traceable now.I earnestly request,if you can help me in this regard at the earliest.
    Thanks in anticipation for an early and suitable response as requested.
    Surendra Sahai Saxena. Kanpur,dated:- 8th october,2014. Mobile: 91 9889301565
    127/1/59,W-1 Saketnagar

    1. All you need to do is visit any CAMS office or UTI office and fill up the redeemption form .. thats all !

  58. Anand says:

    How to redeem if primary applicant is passed away and is it possible to redeem by spouse/nominee. If so what are all the procedure to be placed. please advise.
    sbi magnum multiplr fund.

    1. You will have to claim the mutual fund by contacting the company .. Tell them you want to claim the fund of a deceased person

      1. Anand says:

        Thanks for your reply. I spoke to the company and they said primary and nominee account number to be updated first since primary & nominee name only is available in the record. For that they need primary applicant passbook (Photocopy) and cancelled cheque to record the details. Also they asked letter to be signed off from the primary applicant to transfer it to nominee account.(but primary is no more) and not sure.

  59. jOSE says:

    I just wanted to know the procedure for closing a mutual fund.. i.e , i have redeemed all the units which i had, but i want to stop the company from debiting money from my account as the fund is for 36 months and i dont want to continue on it.

    1. You will have to talk to Bank for stopping the investment

  60. manju mundada says:

    I have invested in UTI Opportunity fund one yr back. Can I redeem it partially. I mean, can i withdraw only appreciation amount and continue the fumd with actual amount.?

  61. P.G.K. Menon says:

    I have been struggling to redeem some, and agents are not so helpful. I found the info on your site very useful – and thank you very much.

  62. upendra prasad says:

    i had purchased sbi bluechip mutual fund growth units. i want to take payment by sbi branch . so, how can take payment?

    1. You can get back the payment only in the same account from where you invested .

  63. Rina Bhattacharya says:

    Hi, Manish,

    I had purchased Capital Growth Unit Scheme -1992(Master Gain-92) in 1992 before marriage . At that my title was Chakraborty. But after marriage my present title is Bhattacharya. For redemption I submitted my present bank passbook (recorded as Chakraborty “Bhattacharya”) alongwith an affidavit of my marriage, Voter Id recorded as Bhattacharya, one cancelled cheque etc. Now after fifteen days I have been informed to submit my marriage certificate, it is necessary for this? Pl. reply how I can encash my certificate.

    1. I guess yes, whats the proof that you are married . I think they will do all this due to the complication and so much time passed

  64. Liam says:

    I guess your intent was to say “I hope you are NOW clear on how to redeem mutual funds?” But I see that instead of NOW you typed NOT.
    Your suggestion was indeed helpful…Many Thanks

  65. Anil Kumar G says:

    Hi Manish ,

    I have invested some amount in some of different ELSS mutual funds on 2007 & 2008 but I have lost all my folio numbers … by any way shall I redeem or get folio numbers in which I have invested ?

    Please help me.

    Thanks in advance !

    1. You can talk to those mutual funds and contact their customer cares on this ,they will help you get those folio numbers

      1. Anil Kumar says:

        Thanks a lot Manish !

  66. Rajesh N says:

    Dear Manish,

    I have invested in HDFC Tax saver mutual fund in April 2011 and lock in period is 3 years which is going to complete in 2014. Now, If ask the agent in Ventura, he informed that the total amount which was invested in 2011 can be taken only in 2015.

    Could you Pl. give your feedback in this regard.

    With best regards,
    Rajesh N

  67. jahnavi says:

    That was a super lead … thanx a ton … got my work done in 3 days … and must add that the people at the CAMS centre are extremly efficient !!

  68. M Madhava Reddy says:

    Thanks for information

  69. M Madhava Reddy says:

    My son is an NRI and invested inIDFC MF thro SIP. Term of three years over. Now he is in overseas. How to redeem the units . Now he wants to redeem the units . Is it required to visit the AMC office personally or he can send a scanned copy of redemption form through mail or through courier. The amount to be credited his NRE account from where the SIP s we’re made . Your guidance silicated.

    1. Did he invest through NRE account only ? If not, then it might get tough to get the money redeemed into NRE account . He can send the normal redemption form

      1. M Madhava Reddy says:

        He has invested through NRE account only. Hence he wants credit into that account only.

        1. Yes then it should be possible . but the procedure’s might be a bit stretched . enquire with the mutual funds company itself

  70. M Madhava Reddy says:

    My son is an NRI and invested inIDFC MF thro SIP. Term of three years over. Now he is in overseas. How to redeem the units now as he intend to redeem due to increased stock market. Is it a must to visit the AMC office personally. Or he can send a form through courier . Can u guide me please.

  71. A B KHANDEKAR says:

    Thanks. Very neat and exact info.

  72. Naveen Kulkarni says:

    first of all congratulation for the fabulous job of enlightening us about array of stuff.I have had held HDFC prudence mutual fund for over an year and when i recently redeemed units, some 14 odd units of the total 280 units were given a higher NAV and rest of were priced at NAV Rs 2/-per unit less.. i had placed redemption order before noon
    i dont understand the disparity in pricing the units ,please help me out here

    1. Can you open a thread on our forum to discuss this –

  73. Vaibhav Saran says:

    Redemption is easier in ICICI Pru. You can send a signed letter to the head office mentioning your Folio number, scheme where you invested.

    1. Thanks for sharing that 🙂

  74. nilay says:

    Hi Manish, Thanks indeed a good information.


    I have taken a mutual fund of Sundaram BNP Paribas Equity Multiplier Fund-Growth plan on 27/02/2007 on my previous wife’s name i.e PURNIMA MAJUMDAR. In the year 2010 Jan we have got divorced.I am the nominee in that mutual fund.1st joint holder also my name is there.Mode of holding -anyone or survivor.Status-Individual.Bank details-Punjab National Bank,Nachan Road, Benachity,Durgapur-13.Now I want to get it redemption.My address is A/19 DURGESHWARI PARK, Tarsali, Baroda.To get the cheque on my name what I have to do? Please advice me.

    1. If its in the name of your wife, then only she can get it !

      1. PRABIR MAJUMDAR says:

        I am the 1st joint holder,nominee also my name is there,and I have got divorce certificate and affidavit or agreement on that she has given in written that she will not claim in future any compensation from me any obstacle on getting en cashed those mutual funds,share she will be responsible.After divorce how she can get the amount once I don’t have any legal relation.

        1. If its not in her name, then she can not get it . If yours is the 1st holder name, then you can withdraw the money /. What is the problem you are facing ?

  76. Priya says:

    I have purchased 500 Rs Fidelity MF – L & T Tax Advantage – Growth Plan online in 2011. But still folio number is not updated. How can I redeem in this case. Since I have purchased online my account is deducted for 115 Rs quarterly.
    Please help me out how can I find the folio number and how can I redeem the units

    1. From where did you buy ?

  77. Govind krishnadas says:

    Thanks Mr. Manish for your reply to my querry. I need clarification on two more points and will be obliged if you can email me on those. Querry No.1
    some of my investments contain my savings bank account with 5 digits only which was common done earlier. Now They say that we must write the current 14 digit number or else the amount will not be credited to my account. If that is the case then should I ask the Bank account to be changed to 14 digit number and only thereafter submit the redemp[tion form? Querry No 2! State bank of Saurashtra in which I had a savings account has now been taken over /converted to State bank of India. A few of my mutual fund investments done in 2005 still show the bank account numbers of State Bank of Saurashtra even though SBI has now changed the Account details with the same numbers of SBS. Will my redemption amount get credited in SBI or should I change the Bank acccount details with rthe concerned murtual funds?
    Govind Krishna Das

    1. 1. Yes, you should ask them to convert it to 14 digits !

      2. Yes it ideally go to SBI bank .

  78. SK says:

    I have SBI Mutual fund for my two children. I am paying IRS 2000 each child and I started in 2011 August. S0 now the amount is going to be IRS 84000 in August. I want to redeem this mutual fund can you tell me how much will I get when I redeem. Thanks.

    1. YOu will get full value

  79. AMARDEEP says:

    I started a reliance sip in july 2010 for 2 years i.e. until july 2012, i still didn’t redempt my units… I have a axis trading account , in which I request for the transfer of those reliance sip units, which in my account showed “approved by RTA”…BUT still didn’t found those unit in my axis trading portfolio, nobody answers me abt dis! 111
    can anybody knows how to redempt my sip unit frrom my axis trading account….

  80. Jasvinder says:


    Want to understand how MF redemption works. Have bought SBI Magnum tax Gain growth scheme for 40000 through SIP of 5000 per month.
    bought this in 2008. What will be the tentative value now

    1. that you have to find out by multiplying your number of units with current NAV which you can get from internet

  81. Govind krishnadas says:

    I have invested in quite a few M/F. Few are good giving some returns. Many are bad as the NAV has plunged. So I wish to redeem the bad investments. Is there a method to find out how a particular M/F is doing? Many times when I ask for a quote on the website of BSE or other sites I get the reply -” no such fund exists. Can you suggest a way how to evaluate the funds I have and which fund needs to be redeemed from?

    1. the first thing is on what time frame are you judging a mutual fund ? It should atleast be 1-2 yrs , not few months . Check what is the CAGR return it has delivered to you compared to its benchmark . better read this first –

      1. Govind krishnadas says:

        Thanks for the info! I shall now go thru my investment and see if I have to stay put or shift them.

  82. Rajeev says:

    Hi , very useful info. I recently redeemed my units on idfc premier equity , I did it online from their site over a weekend and got message that transaction will be actioned coming Monday which was 11th Feb. I can see that they have actioned the redemption request today is 13th but still do not have money in my account. How long does it take usually for direct credit. My account details are correct and it is active.

    1. IN general it takes close to 3-5 working days !

  83. Kruti says:


    I have changed my name from Kruti Jain to Kruti BAdjatia and accordingly I have changed my Pan Card too. What would be the procedure for me.

    1. If your name in bank account is not yet changed , then there is no issue . Just follow the procedure given in this article .

  84. Arun says:

    I have 2 ELSS which are nearing their 3 yrs lock in period by next month so can i redeem all the units next month or keep them and redeem them when the NAV get higher?

    1. You can redeem them if you are in need of money, else leave it .. also note that the ELSS units gets locked for each SIP …

      1. Arun says:

        Thanks for the reply manish…… wat do u mean by locked ? is the NAV locked ? i started the sip on 2010 and its going to end mar 2013

        1. Each month when you invest in ELSS, then that particular money is treated as new investment and will be locked for 36 months. So what you pay in jan 2010, will get locked for jan 2013 , same for feb , mar …

  85. Sowjanya says:

    HI Manish,
    I have 2 mutual funds, one from Sundaram Finance and one HDFC Tax saver. I want to redeem the same. The Redemption mode is “Direct Credit”, but my old bank account is now deactivated. What could be done in such case. Please guide.

    1. This is common problem .. now you will have to carry the cancelled cheque along with the letter of bank manager also .. and fill up the new bank account info !

  86. Kas Ben says:

    I had started SIP in Reliance Mutual Fund for Gold(G) from Nov 2011 from Sharekhan. Can I redeem the units alloted to me on 02-Nov-2011 for cash. I have started SIP of 1500 per month. 114 units were alloted on that day at the cost of 13.05 NAV. If I redeem now, how much can I expcet? Can I expect 114*14.308(todays’ NAV) = 1640/-. Or will there be any deductions.

    1. as 1 yr has passed, there should not be any exit loan ,you can expect 1640 now , note that the NAV will be the same of the day when you apply for redeemption

  87. kasipathi says:

    I had started SIP in Reliance Gold Savings Fund(G) from Nov 2011 from Sharekhan. Can I redeem the units alloted to me on 02-Nov-2011 for cash. I have started SIP of 1500 per month. 114 units were alloted on that day at the cost of 13.05 NAV. If I redeem now, how much can I expcet? Can I expect 114*14.308(todays’ NAV) = 1640/-. Or will there be any deductions.

  88. Neeraj Vasudeva says:

    Very nicely explained, keep it up.

    Noida address on hsbc website was given incorrect, but on CAMS website it was given correct. I finally sent a feedback to HSBC website got a response from them that they have forwarded my concern to respective dept., but as of today, HSBC website still shows wrong address for Noida branch.

    1. You just need to fill up CAMS form for withdrawal

  89. Ashwin Sinha says:

    can i send the redemption form through courier to the cams centre

    1. I m not sure on that . Please check the FAQ on cams website !

  90. Vijay says:

    Some of the content is incomplete/incorrect

  91. prasenjit says:

    MANISH ,


    1. If you have mentioned the Axis bank details in your ECS mandate , then it will be debited from there !

  92. Ajay Bali says:


    Suppose i bought 100 units of a Mutual Fund in Jan , 2010 under tax saving scheme (ELSS) another 50 Units in Jan 2011 under same folio and scheme.

    Now i want to redeem these units.

    Please suggest how many units can i redeem in Jan 2013.

    Can i redeem only 100 units or entire lot of 150?


    1. You can only redeem 100 , each ELSS investment is locked for exactly 3 yrs

  93. Bhaskar Karpurapu says:

    I have opened an account for MF trading and i have purchased some mutual funds. In the MF statement, I see a line saying ‘ KYC to be compiled’. When I checked my pan number in cvl india website, it says ‘Invalid data’. But, I’m able to purchase MFs with my account. Can you please advise. I have applied my KYC and opened my MF account 1 mnth back. The bank people are not able to say if my KYC has been rejected.
    Awaiting your reply


    1. Seems like your Demat KYC is getting used , I think you should go for KYC else you wont be able to make large transactions

  94. Lloyd says:

    What is the process to be followed to redeem 2 purchases which i made at different time intervals ? Do i need to calculate and add the units exactly for 2 transactions to be redeemed or add the amount of purchase of 2 transactions to redeem?Eg: 1st transaction – Amount 5000 purchase – 25.773 units
    2nd transaction-Amount 8000 purchase – 40.609 units
    Should i add the units or add both the amount to redeem both purchases?

    1. You just have to mention how many units you want to redeem , thats all ..

  95. Savitaben M Vaghela says:

    I have closed my old saving bank account, now old bank book was not available for me . i have open new bank account with other bank now I want redomption my units how

    1. It will be a little longer now . You will have to enclose your new bank account cheque

  96. Swapnil says:

    I had bought some Mutual Funds with my HDFC bank account no in 2007.
    Since then HDFC has added 1 digit (0-prefix) to my bank account no.

    How do I go about redeeming my MF? Do I need to request change of bank account number for all MF houses before redeeming? The problem is, I don’t have any cheques with old account number.
    Calling HDFC customer care did not help much.

    Any help would be greatly appreciated. Am sure all HDFC account holders are facing this issue.

    Best Regards,

    1. hmm.. Why dont you request for more cheques from the bank . ANd also raise this query on our forum and discuss –

      1. Swapnil says:

        I meant cheques with old 13 digit account number. This is required as proof of old account.
        The new cheques have 14 digit account numbers.

        1. So you have both cheque’s right ! .. old and new. cant you use both of them . What does customer care say about this issue !

  97. hema shetty says:

    to redeem Mutual Fund Can we approch the registered bank mentioned in the form?

    1. No , bank has no role in this , you have to contact AMC for that !

  98. pavan says:

    Hi Manish !

    I have invested lumpsum in HDFC MF via icici direct a few years back. Last year i started SIP in same folio number but through karvy distributor.

    Now i want to redeem earlier invested MF however not clear about the treatment of ongoing SIP since the lumpsum MF and SIP share the same folio number.

    Please let me know.



    1. If you sell the number of units which were there before 1 yr, then it will not attract tax , First come first out rule is applicable

  99. Akram says:


    I have SBI magnum taxgain abnd trying to get the NEFT updation form for SBI MF.
    I am unable to get one online,can you please help me.


    1. Akram

      did you contact the company customer care ?

  100. VARINDER SINGH says:


  101. Meghshyam Chaudhary says:

    I have HDFC Gold Mutual Fund (SIP)
    and the person from whom I bought is not in a condition to redeem it, so how can I sell my MFs.

  102. Vivek Rawat says:

    Hi manish

    Nice article 🙂

    I have one doubt or rather a question. does mutual fund allows partial withdrawal? like if i wish to withdraw 25%-50% of my units only?


  103. Praveen says:

    Hi Manish,

    I have a basic query with respect to redemption of units, if i redeem all of the units today, will my SIP continue or will it close?
    Ex: i have 1000 units from every month SIP installment and i sell them of today, will my SIP continue, as it happens through ECS or will it close?

    Thanks & regards,

  104. Vijay says:

    You mentioned that if the old bank account is closed you can just submit a form with new bank account details including cancelled bank account cheque. Does AMC verify if the name on the folio matches with the name on the bank account check when redeeming funds ? If AMC is not doing this then any one with folio number can redeem our funds .Please clarify.

    1. Yes Vijay

      Obviously .. they check all the neccessary things before redemption 🙂

  105. puneet arora says:

    i want to redeem SBI ELSS , however i have to change my bank account as i have closed my old account but when i went to AMC with my bank closure form they told me that i have to first fill up KYC form and for that i have to make some investment as they do not do kyc without investment.
    I am not able to understand the logic why to make investment in order to withdrew money

    1. Puneet

      In case you have closed your old bank account , there is a place in the withdrawal slip where you can mention the new bank account where you want the money to come , but then you will need to show them a cancelled bank account cheque . Better go to CAMS and find out what to do . I went to CAMS for my withdrawal and they had told me this procedure .. however in my case I had my old account active 🙂

  106. SANJAY LAHA says:

    Is it mandatory to update address or KYC status before going for redemption of my MFs if the bank account(s) is duly registered? Please guide me.

    1. Sanjay

      No , if the bank account is same as at the time of buying the funds , then the money will come back in the same bank account .

  107. Chandranshu says:

    Hi Manish,

    I have few offline funds like HDFC Top 200 & HDFC Equity purchased from HDFC bank itself but personal banker never suggested me to keep same folio number. Can it be made same now? Recently HDFC personal bnker suggested me to open Mutual fund online account with them with quarterly charge of 100 INR. I have purchased few funds online but they have account no not the folio number..I am confused? Can I transfer my HDFC mutual funds to funds india?

    1. Chandrashu

      Better you go with FundsIndia , they are free and provide a good enough platform .


  108. Nitin says:

    Hi Manish

    Wanted to share with you a thought that I had….read Subra’s book and kept on thinking of making a retirement plan using debt instruments…

    What are your thoughts on it?

    I have also asked for Mr Subra’s comments and thoughts.

    Would be grateful….if you could have a look


    1. Nitin

      As a rule itself “Equity should be the investment vehicle for long term” . why do you want to use debt products for retirement ? You should be thnking about GROWTH and not preservatin of capitla at the moemnt


  109. Vaibhav says:

    Create you portfolio online with a service provider like FundsIndia etc and the process of investment and redemption will be much more pain-less, especially if you are a busy professional .I say this from personal experience.
    Sometimes they do goof up regarding the updation of online portfolio but overall the process is fine.

    1. Vaibhav

      Thanks for your feedback . It will help others


  110. hitesh chellani says:

    Hi Manish

    I want to invest maximum one thousand 1000INR per month on Mutual funds. I have not purchase MFs before. Can you brief me how, which and what type of MFs should i purchase?What is the rigth time to purchase.
    Give me MFs which are SIP.


  111. Raghvendra says:

    Dear ,
    I have the Canara Robacco Tax sever Fund, But Fund house are not provided the online services, On the same way the AMC Karvy is also not provide the online services for the same Folio, Please suggest if having any option to online Redemption from the Canara Robacco .

    1. Raghvendra

      WHy dont you redeem it from their office itself


  112. Trishit Ray says:

    Hello Manish,

    There are few things about the redemption process that would be helpful if you throw some light on.

    1.I have heard anything that is transacted in the stock market has a Securities Transaction Tax(STT). In the case of MFs the STT is paid by the AMCs and adjusted in calculating NAV.So the investor does not have to pay STT while redeming.Am I right?
    2.There is exit load if one redeems before a certain period,generally 1 yr for open ended mfs.Now,the mf deducts the exit load and gives the investor the rest sum.Am I right?
    3.Does the mf deducts the STCG(in case of redemption before 1 yr ) or the investor has to calculate it according to his tax slab in the IT return and pay to the IT dept?

    I know these are quite elementary questions but your reply will help me and many like me.


    Trishit Ray

    1. Trishit

      AMC does not deduct the STCG or LTCG , anything else is deducted on AMC side


  113. chris says:

    Hi Manish,

    I want to know when can i redeem the ELSS (tax saving ) MF. is it 3 years from the date of purchase or 3 years from the end of the finanical year you purchased the ELSS MF ?


    1. Chris

      Its 3 yr from the date of purchase 🙂 . So exactly 36 months


      1. sandie says:

        Hi Manish,

        if in case i have started SIP for 3 years, then does this mean i can only redeem only after 3 years of last SIP date or i can right way go ahead and redeem once im done with last installment ?


        1. Sandie

          Its pretty simple , Each payment is locked from its own purchase date ,, so if I do a 1 year SIP in Oct 2007 , then I make first SIP payment in Oct 2007 , then Nov 2007 , then Dec 2007 , the first SIP made in Oct 2007 gets locked for 3 yrs from Oct 2007 which is Oct 2007 + 36 months = Oct 2010 (approx) , the next one is available on Nov 2010 … so on


  114. Atul says:

    Hi Srikanth,

    My wife has account with fundsindia and have been extremely satisfied with the services. My wife was previously investing via HDFC. All the existing MF holdings have been transferred to FundsIndia online except DSP ones. We have been following up with Fundsindia and have not got solution yet. Its more than 6 months now. DSP related holdings are still in offilne mode. Can you throw some light?



    1. Srikanth says:

      Hello Atul,

      Thanks for the kind words, and I will look into the DSP BR issue. If you can please, send me an email at srikanth@fundsindia, from your registered email id so I can track the issue.



  115. TaxSpanner says:

    Investing online in mutual funds through a demat account is much better option than visiting different AMC offices. The cost of demat account is less than your conveyance cost for visiting the AMC office. Moreover, the transparency and convenience of purchasing/redeeming is great. You get the rating of the mutual fund, which helps you in choosing the best performing fund. You can anytime check the total value of all mutual funds. On redemption, the amount is credited within two days in most cases. Some online demat accounts offer capital gain tax computation as well. This helps a lot. In case you need funds for short term, taking loan against mutual fund units (instead of redemption) can help you save tax.

    1. dr kishan says:

      this is a news to me. can you or manish please elaborate the process of taking loan against mutual fund units. which are agencies giving these types of loans.
      This can be a good source of money for short times.
      dr kishan

      1. Dr Kishan

        All banks would give you a secured loan on MUTUAL FUNDS , FD , PPF etc


    2. TaxSpanner

      How can taking a loan against mutual funds will save tax for some one ? Or are you reffereing to the tax not paid on the redeemption amount ?


  116. Tejaswi says:

    Suppose you have 24K in your MF and you do a SWP of say 1000. At the of 23rd month say you have 350 Rs in MF based on NAV.
    1. So will I get the 350 Rs on my last SWP or my SWP be rejected?
    2. Once all the amount is re-deemed, should I submit a request to Stop SWP?
    3. If there is no balance in MF, and SWP is NOT stopped…Will I be charged any penalty for NIL balance?

    1. Tejaswi

      1. Your SWP will not be rejected . It will go for the balance amount

      2. No , you dont have to do anything .. when all the units are exhausted , it will stop on its own

      3. No


  117. Trishit Ray says:

    Hello Manish,

    Thanks for explaining the redemption process in simple language.I have just started with fundsindia.It is very convenient way of investing in mutual funds.For redemption and other purposes do you suggest me to get online facility of the AMC also?Why?


    Trishit Ray

    1. Trishit

      No , fundsindia would be enough .. Its an intermediary anyways .. no need to go for seperate account with AMC’s


  118. bharat shah says:

    i suggest to be careful to check your information of your folio /account with amc available on any account statement. i got twice the problem not getting my redeemed money to my account because the number of account was erroneous due to one more digit was induced in real no. (may be my mistake at time of filling the form, or by mistake of amc at time of encoding my details in the record) though the cancelled cheques were given at time of filling the form.

    1. Bharat

      Yea .. thats right , It might happen that while filling up the form one makes mistake in folio number , thats something one has to check 3 times 🙂 .


      1. BHARAT SHAH says:

        and why they are asking cancelled copy of the cheque of the said account? the king can not do wrong!

        1. Bharat

          Its not cancelled copy of bank account which you used at the time of buying , its of another account if you need money in seperate account . Its just to make sure that fraud cases are minimized !


  119. S S says:

    I invest via FundsIndia, its really userfriendly even the redemption process is very simple. Thankfully we don’t belong to the age where one was supoosed to visit banks or post offices otherwise most of the people I know I would not have invested at all! Many people are redeeming their units, however I’ve decided to stay on.

    1. T S Ashok says:

      I am also using fundsindia. I feel very very easy to deal all kind of MFs. Especially, if i have money lying in bank and required for emergency, i normally choose liquid fund which has no entry & exit loads. buying and redemption is very easy through fundsindia. I recommend to many of my frineds…

      1. Anand says:

        Can you please mention one or two liquid funds which have no entry and no exit load? One I know is fidelity cash fund, but I want to know similar funds from other fund houses.


        1. Anand

          No fund has entry load now , its banned by SEBI . Some funds might not have exit load .. not aware of them


        2. Madhu says:

          @ Anand, None of the liquid funds have Exit Loads. Thats the reason we use them for STP’s. I think even the Ultra short term funds doesnot carry Exit loads. The Exit loads start from Short term funds but will be upto Max three months.

          Before investing cross check on valueresarch or Morningstar

    2. SS & TAshok

      Thanks for putting your recommendation , i am sure many others would love to take desicion based on that


  120. Shobha says:

    Hi Manish,

    If you do not have time to visit the AMC or CAMS office, you can do it by Post too.

    In my case while redeeming my MF, I had just couriered the filled and Signed Redemption slip (Available in MF statement they send or Downloaded Online) after confirming with their customer Service.

    Since all details was updated, I had got the refund in 3 Days for all my MF’s (DSP, HDFC, Reliance and Fidelity)

    Thanks and Regards


    1. Shobha

      Thats good .. thanks for the info .. It will help others


  121. Ramesh says:

    Hi all,

    Does anyone redeemed online? i have a query here…
    I have bought units at different dates. I have not seen any option to choose units bought on particular date….
    How the fund house choose which units are to be considered for redemption?
    Will they redeem from the recently bought?

    1. Ramesh

      Do you really think matters ? How does it matter ? You sell X units , thats all , which unit is which one does not matter .. Its like you bought 2 apples at Rs 10 and Rs 20 and now their market price is Rs 30 each .Which one would you sell ?


      1. Ramesh says:

        Hi Manish….

        yes it matters in exit load if some units are bought before one year and some are bought after one year….
        And if all the units are less than an year old, then I can choose the recently bought units so my first bought units will still maintain their age..
        Do you have any idea on this…
        Thank you for your reply.

        1. Ram says:

          It is always FIFO (First In First Out) format. You can not specify the date.

          1. Ramesh says:

            Hi Ram,
            I think Last In First Out is beneficial as I mentioned above.
            “If all the units are less than an year old, then I can choose the recently bought units so my first bought units will still maintain their age to avoid exit load”.

            BTW FIFO is your observation or officially stated somewhere?

            1. Srinivas says:

              It is always FIFO format

            2. prabe says:

              @Ram your statement does not make sense Last in First Out will make you pay the exit load for units bought within prior 12 months.

              You should understand every purchase has a Exit load period its not like every folio has a exit load period.

              So in case of First in First Out i will be redeeming the funds which i bought in the beginning and it that has been before 12 months i will not have to pay the Exit Load

            3. Ram says:

              @Ramesh, it is official FIFO. You can check the same with any AMC.

              @prabe, I could not understand which statement of mine, you could not make sense of. Say if you are redeeming 100 units and you have 100+ units older than 1yr, you need not pay any exit load. Any confusion?

            4. Ram

              I am confused with this conversation of FIFO & LIFO . Does AMC’s mention anything like that ? When I redeem X units out of my X+Y units , then are those units marked with dates ? Its pretty clear that what I am selling is the oldest one .


            5. prabe says:

              it should have been @ramesh typo error from me

            6. Ram says:

              As you said, “… Its pretty clear that what I am selling(FO) is the oldest one (FI)”… hence FIFO …

              Say, someone has done SIP in some MF from Jan 2010 to Dec 2010 (1st of every month). Now if he wants to redeem some units on 2nd Jan 2011, then only the units that were purchased on Jan 2010 would be more than 1 yr old, hence would not have any exit load. If he is redeemin more units (on 2nd Jan 2011) that what he purchased on 1st Jan 2010, then those extra units would have exit load.

              Does this answer your question?

            7. Ram

              No it doesnt .. In your example ,you are assuming that companies label units based on date of purchase .. like they keep boxes for each month and keep units in seperate boxes and when you ask them to sell , they take out units from those boxes (just an imagination) ..,

              What I am saying is that when you ask for redeemption , all they do is see how many units you want to sell and overall are there units which are old enough to not have exit loads , there is no “labeling” , so FIFO concept in implicit and not literally practiced .

              Are you getting what I am trying to say ?


            8. raj says:

              Hello Manish,
              nice article. And it has raised a very Vital Issue i.e.
              ** if one Re-purchase units of SAME Folio No. in same MF scheme; then purchaser is at a dis-advantage. Compared to a purchaser who EVERY TIME Re-purchase units of same MF scheme but in New/DIFFERENT Folio No. As the later purchaser can redeem as per his/her Exit Load time line and there by saving 1-2%.

  122. Mathu says:

    Hi Manish, I buy mutual funds through I use my SBI Bank online account for purchase. Recently i redeemed one of my funds through I thought amount will be credited in my bank account directly. But I got a cheque for the amount from the CAMS. How can I make my future redemptions with direct credit.

    1. Mathu

      This is fundsindia related , Srikanth would be able to answer why this happens .. Let me get him here to answer this .


    2. Srikanth says:

      Hello Mathu,

      The mode of redemption is done per the policies of the mutual fund companies. For all CAMS funds, the AMC will attempt direct credit (if they have an account with a list of specific banks), then an NEFT/RTGS transfer (for other banks). If they have an issue doing of of these two, they will issue a cheque to the address. The only issues in this case would be a mismatch between the detail in the folio and and bank account. For example, if there is a mismatch between the name registered in the folio and the bank account, the electronic transfer will be denied, and a cheque issue will happen.

      Please send us a mail at contact at fundsindia with the folio details, and we can investigate for you.

      For funds in Karvy, the process is a little different. For a set of funds that are registered to a bank account in a list of banks, they will do a direct credit. Else they will issue a cheque. Reliance is a prime example of this kind of funds.



      1. raj says:

        To Shrikanth and Mathu,
        Thanks for Mathu’s question and Shrikanth’s reply.


        1. Mathu says:

          Hi Srikanth, Thanks for your clarification. I will send the mail. The fund in question is JM Money manager super. I bought this in lumpsum and through the online account of my SBI savings bank.

          1. Srikanth says:


            JM is a Karvy managed fund house. It is likely that SBI is not in the list of banks for JM that process electronic credit, and hence the issuance of cheque. Please do send the details and I’ll verify.



            1. Mathu says:

              Thanks Manish and Srikanth.

              Hi Srikanth, as you said I have sent the mail from Contact us in

            2. Trishit Ray says:


              I have been following your conversations with Srikanth.I request you to update this thread readers what happens finally.


              Trishit Ray

            3. Trishit Ray says:


              Sorry I typed your name as Muthu.


            4. Mathu says:

              @ Trishit, I sent a mail to and got a reply that JM doesn’t support SBI for Direct credit. They said I will receive cheque payment only.
              I contacted JM directly. They asked me to send the filled redemption transaction slip (downloaded from JM site) directly to them with a note saying NEFT payment to be done. I have to check whether that works.

            5. Srikanth says:

              I was surprised to hear JM’s response to Mathu. So I followed up as well (if they can do it for one case, why not for all?).

              Apparently, they are currently doing it on a case by case basis for offline requests such as this. My team (ops team at FundsIndia) is following up with them to see if they can make it uniformly this way for all our customers since they all prefer it in this manner. Let’s hope they will start doing so.

              Thanks, Mathu, for the follow-up and interest in this regard,


  123. raj says:

    Hi Manish,

    As Akshay asked in reply 11, can we buy different MF schemes from different AMC with same Folio no.? What are the pros & cons of it?


    1. Raj

      No , the folio number would be different for different AMC , in akshay case the fund house was same (HDFC) , hence the folio number was same


  124. Akshay says:

    I have HDFC Equity and HDFC Top 200 under the same folio no. How do i redeem some units of 1 of them..??

    1. nandish says:

      Akshay you can go to the following link and put a request of redemption

      mention folio number and scheme name that you want to redeem

    2. Akshay

      Along with folio number , you also have to mention the fund name . So that way you can put name of only that fund which you want to redeem


  125. Ashish says:

    Can anyone let me know what are the pros & cons in investing in MF directly through AMC, Online and Agent?

    1. Ashish

      For you there is no difference if you look at it from cost point of view .. the only thing is with AMC that trail commission will remain with them . This article will give you more idea :

  126. Rakesh says:


    Very good explanation. I have been redeeming my mutual funds both offline and online without any problems. I don’t think in case of offline redemption you need to go to CAMS or Fund office. You can courier the redemption form to them and follow-up after 3-4 days.


    1. Ivan says:

      I agree with Rakesh, there is no need to visit the CAMS or KARVY or FT office to redeem the MF Units.

      First check the registrar of your fund. Download the transaction slip from their website, fill it and send it even in regular post to their nearest office or their HO.

      Your money will be deposited in the account which you have registered with that fund house in 2 to 3 working days after your request reaches them

      The best thing to avoid all this hassles is to move your offline holdings to one of the online MF provider like FundsIndia, once they are linked to your a/c in these sites, redeeming is as easy as click of a button.

      Its better to get the KYC done and inform your mutual funds, they will update your address, bank a/c , email id and cell number from the KYC details which will be good so that all your details are up to date.

      There is one more way to send a single request to update your contact address and bank details using PAN based request, you need to send the PAN based request to all the registrar’s (CAMS, KARY or FT) then all the MFs holdings with the quoted PAN number will have the updated details

      Moving the units DEMAT form will have cost implications as service provider will charge the transaction fee ( I have not tried this, I am not sure though, but read some where )


    2. Rakesh

      Yes . one can post the redeemption forms to AMC office or CAMS . By if its a few Km away , one can complete the things by going there,.. in my case i did that


  127. raj says:

    Manish ,
    Good article.
    I have Sharekhan D Mat a/c.(online)
    I have redeem 01 unit of 1-UTI banking- Got a Cheque from UTI
    2. Reliance Banking – Got a cheque from karvey
    I asked Sharekhan officers why I have got a cheque instead of direct credit to Bank? He replied that your MICR no. is not linked. After my MICR of SBI & ICICI is linked, I again Redeem 01 unit for trial, again I got a cheque.
    I wish that my money should be credited directly to my account .
    What should I do?
    Do I have to submit MICR no. to each AMC?
    Again I have 01 query- How should we nominate MF?

    Awaiting your valuable advice.


    1. Rakesh says:


      I will answer the nominee part. You need to download the nominee form from the fund house or from CAMS if the fund is served by them. Fill in your personal details along with folio number and the nominee details and send it to them. Within a week your nominee details would be updated. I have just appointed nominee for my funds last month.


      1. raj says:


        Thanks a lot.
        From many days I am just postponing Nominee procedure as I am thinking that it would be difficult and boring task.
        Again I have one query-After filling the form to whom should it be sent?
        AMC or CAMS/KARVEY?


        1. Raj

          A lot of AMC’s appoint CAMS & KARVY for their work , so sending them would work . but a lot of funds dont , like Sundaram does all the work itself and does not take help from CAMS on this , so you have to send it to AMC in that case


          1. Madhu says:

            Franklin is another guy.. they does the RTA work themselves

  128. Jitendra Solanki says:

    Good one.

    Some points to consider while redeeming Mutual Fund Units:

    1. If address is changed, the AMC does not accept any address change applications.All AMCs now pick it from KYC.Hence you need to change KYC address.
    2.Some companies like SBI, you do not need to register seperately for online access.Even if you are doing it first time you just go to the web site, register and do your transaction. So there is not TAT for online access.Instant password and transaction happens. I did it once.
    3. With some AMCs, the change in bank mandate during redemption might make the process linger as first the bank information changes which itself take few days and then the redemption is processed.
    4. Never do a urgent redemption if doing it offline.I have experienced people coming for redemption because they need the money in third day.Many of them faced dissatisfaction due to technical reasons or may be anything.Always have enough time when you redeem your money.

    I do not think in this market fall many investors are redeeming their money.Two Reasons- Lesson is learnt from previous fall and secondly most of the investment after that has been coming through SIPs.

    1. nandish says:

      I learnt a few good points. Thanks for sharing with people

  129. SAURAV SINHA says:

    Gud article Manish,
    CAMS facility is really a big help for us. Can we redeem ULIPS as well thru CAMS?

    1. nandish says:

      Saurav ULIPs cant be redeemed through CAMS they need to be surrendered from the respective insurance company.

  130. nitinpai says:

    Hi Manish,

    I am currently planning to redeem some of my older mutual funds which I bought from my agent before the online facilities came in picture.

    However, I would advice that instead of redeeming it directly from your agent to get a lumpsum amount try converting your non-demat folios into demat folios so that you can start an STP from that fund to another fund.

    With lumpsum redemption there might be some losses which you can avert by an STP online through your demat.

    1. NitinPai

      Can you explain why there can be losses in redeeming it one time ? I am not clear on that .. Also how does one avoid if one wants the money urgently ?


      1. nitinpai says:

        Hi Manish,

        I was referring to notional losses. For example, if the stock market is doing well and the fund is growing in its NAV then if you redeem the lumpsum then you might miss out on the profit from the higher NAV.

        On your second point, yes if the redemption is for a goal then you would obviously have to redeem out the entire amount.

        But for other emergencies I believe you need to keep a contingency amount in a liquid fund.

        1. NItin

          Yea .. but why are you only thinking about notional losses .. There can be notional profit too.. what if market crashes after you redeem ?

          The decision you will take has to depend on what you need now, not on the future of your mutual funds .


          1. nitinpai says:


            Yea, you are right. I was thinking uni directionally. 🙂

            By the way, I am facing one problem. I want to dematerialize Sundaram Bnp Tax Saver Fund ELSS Dividend. For this I have to submit the latest statement to ICICIDirect.

            But when I check on CAMS, Sundaram Bnp is not more in the listed AMC’s and now only Bnp exists for which it says my folio is not valid folio number. What should I do now?

            1. Nitin

              No idea on dematerialization question . One thing is why do you want to dematerialise it .. If you have crossed 1 yr , then better sell off and repurchase .. fast and easy , a little price


            2. Madhu says:


              I felt the need of dematerialization when I want to move my MF’s from Sharekhan Online to Funds India. The process ( as told by Sharekhan) is convert the Online Funds to offline, Change the broker and then convert it to Online.

              I have submitted a resuest to SK to convert my funds to Offline a month ago and still not heard back from them. The delay might be at the fund houses too 🙂

            3. Madhu

              Yea ,, it can happen .. good to hear that SK is so supportive of giving info 🙂


            4. ATS Preeth says:

              Hello Nitin,

              Sundaram BNP Tax Saver is now Sundaram Tax Saver as BNP is different AMC after buying Fortis.

              Anyways… you need to contact Sundaram MF for this conversion. Also, why do you want to move MF to demat mode? It will cost higher when you starting SIP’ing or buying MF via them. Do check on it.

              Instead for pure MF if you need to go online, opt for Fundsindia, Moneysights, Fundsupermart etc… they are free and cheaper alternative and you have complete control.

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