Close Ended Mutual Fund Redemption

POSTED BY Abhishek Chanda ON May 7, 2011 9:27 pm COMMENTS (2)

Can the close ended Mutual Funds redeemed before the maturity? I had purhased some units of SBI Tax Advantage Fund Series I during the NFO in 2008. It is a close ended MF for 10 years. Now when the lock in period is over and there is good amount of return, I want to redeem it and invest in some other diversified fund.

Valueresearch online mentions the redeemable date of 2018. So, does FundsIndia where the fund does not come up in the redeemable list.

I am little bit confused on this. Is it not possible to redeem at all a close ended MF before the maturity date? Or is there some charges attached?

Please Help!

2 replies on this article “Close Ended Mutual Fund Redemption”

  1. Anand says:

    I am in the same boat.
    This fund can be redeemed now, but there is an exit load.

    Since the performance is not good, I suggest you too get out of it.

  2. Generally, close-ended funds have initial charges and they invest in such a way to generate profit in long term. If you want to redeem before maturity date, you need to contact their customer care centre and ask them whether you can redeem the fund now or not and if yes, ask for exit load, which is generally high. This load changes every year.

    Hope it will help you.

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