The time taken for the amount to be credited to your bank account after redeeming a mutual fund depends on the type of scheme you’ve invested in. Each fund follows a different settlement cycle, which determines when the Asset Management Company (AMC) transfers the redemption payout.
Settlement Timelines for Different Fund Types
- Liquid Funds → T + 1 day
- Debt Funds → T + 2 days
- Equity Funds → T + 3 days
- International Funds → T + 5 or more days
(T = The date when the redemption order was approved by the AMC.)
Important Points to Note:
- Some schemes may have different redemption cycles, so it’s best to check the fund-specific terms.
- SEBI regulations mandate that redemption payouts for non-demat mutual funds and SWP (Systematic Withdrawal Plans) can only be credited to the bank account linked to your folio.
- If the bank verification fails or the linked account is closed, the AMC will issue a cheque/DD to the registered address associated with your folio, which may cause delays in receiving the funds.
The time taken for the amount to be credited to your bank account after redeeming a mutual fund depends on the type of scheme you’ve invested in. Each fund follows a different settlement cycle, which determines when the Asset Management Company (AMC) transfers the redemption payout.
Settlement Timelines for Different Fund Types
- Liquid Funds → T + 1 day
- Debt Funds → T + 2 days
- Equity Funds → T + 3 days
- International Funds → T + 5 or more days
(T = The date when the redemption order was approved by the AMC.)
Important Points to Note:
- Some schemes may have different redemption cycles, so it’s best to check the fund-specific terms.
- SEBI regulations mandate that redemption payouts for non-demat mutual funds and SWP (Systematic Withdrawal Plans) can only be credited to the bank account linked to your folio.
- If the bank verification fails or the linked account is closed, the AMC will issue a cheque/DD to the registered address associated with your folio, which may cause delays in receiving the funds.
