The amount you invest in a mutual fund becomes available for withdrawal after the units are allotted and the fund’s minimum holding period (if any) is met. The withdrawal eligibility depends on:
1. Fund Type & Settlement Period:
Each mutual fund category has a different settlement time before units can be redeemed:
- Liquid & Overnight Funds → Available T+1 day (1 business day after purchase)
- Debt Funds → Available T+2 days
- Equity & Hybrid Funds → Available T+3 days
- International Funds → Available T+5 days or more
(T = Transaction Day when the order is approved by AMC)
2. Lock-in Period (If Any):
- ELSS (Equity-Linked Savings Scheme) has a mandatory 3-year lock-in, meaning you cannot withdraw until the period is over.
- Certain closed-ended funds have fixed maturity and cannot be redeemed before that.
3. Exit Load & Other Restrictions:
- Some mutual funds may have an exit load if withdrawn before a specific period (e.g., 1% if redeemed within 1 year).
- If units are pledged as collateral, withdrawal will not be possible until the lien is removed.
4. Bank Processing Time:
Once you place a withdrawal request, the money is credited based on the fund category’s redemption timeline (T+1 to T+5 days).
To check when your investment is eligible for withdrawal, visit your AMC’s website or investment dashboard.
The amount you invest in a mutual fund becomes available for withdrawal after the units are allotted and the fund’s minimum holding period (if any) is met. The withdrawal eligibility depends on:
1. Fund Type & Settlement Period:
Each mutual fund category has a different settlement time before units can be redeemed:
- Liquid & Overnight Funds → Available T+1 day (1 business day after purchase)
- Debt Funds → Available T+2 days
- Equity & Hybrid Funds → Available T+3 days
- International Funds → Available T+5 days or more
(T = Transaction Day when the order is approved by AMC)
2. Lock-in Period (If Any):
- ELSS (Equity-Linked Savings Scheme) has a mandatory 3-year lock-in, meaning you cannot withdraw until the period is over.
- Certain closed-ended funds have fixed maturity and cannot be redeemed before that.
3. Exit Load & Other Restrictions:
- Some mutual funds may have an exit load if withdrawn before a specific period (e.g., 1% if redeemed within 1 year).
- If units are pledged as collateral, withdrawal will not be possible until the lien is removed.
4. Bank Processing Time:
Once you place a withdrawal request, the money is credited based on the fund category’s redemption timeline (T+1 to T+5 days).
To check when your investment is eligible for withdrawal, visit your AMC’s website or investment dashboard.
