Withdrawing money from mutual funds is simple and can be done in multiple ways depending on how you invested. Here’s a complete guide:
- Modes of Withdrawal
You can withdraw your money using any of the following:
| Mode | Description |
| Online via AMC website/app | Login to the Asset Management Company portal and place a redemption request. |
| Online via platform | Platforms like EMDMF |
| Through your distributor/advisor | If you invested via an agent or financial advisor. |
| Offline (form submission) | Fill a redemption form and submit it to the AMC or mutual fund office. |
- Processing Time
| Fund Type | Settlement Time |
| Equity Funds | T+3 working days |
| Debt Funds | T+1 or T+2 working days |
| Overnight Funds | T+0 or same day |
T = Transaction day (cut-off time is usually 3 PM)
- Documents Needed (Only First Time or Offline)
- PAN and KYC documents (already done for most users)
- Bank account must be pre-registered for credit of redemption amount
- Types of Withdrawals
| Type | Use Case |
| Full Withdrawal | You exit the entire amount |
| Partial Withdrawal | You redeem only part of your units |
| SWP (Systematic Withdrawal Plan) | Regular periodic withdrawals (like monthly pension) |
- Points to Keep in Mind
- Exit Load: Check if there’s an exit load (fee) for early withdrawal (usually 1% if redeemed within 1 year in equity funds).
- Tax Impact:
- Equity: 15% (short-term <1 year), 12.5% (long-term >1 year, above ₹1.25 lakh)
- Debt: As per tax slab or 20% with indexation
- Ensure your bank account is updated with the mutual fund.
Example:
You have ₹1 lakh in a mutual fund.
Want to redeem ₹30,000 → Login to the AMC/platform → Select “Redeem” → Enter ₹30,000 or units → Submit → Money comes to your bank in 1–3 working days.
