The time frame for mutual fund redemption processing in India usually takes 1 to 3 working days. After you place a redemption request, your money is transferred to your bank account based on the type of mutual fund you have. Equity mutual funds generally take 3 working days (T+3), while debt and liquid funds are faster, often settling in 1 to 2 working days (T+1 or T+2). This timeline ensures the fund company has enough time to calculate the correct NAV and process your payment safely and properly.

How many days does it take to get money after mutual fund redemption?

After you redeem a mutual fund, the money usually gets credited to your bank account in 1 to 3 working days. The time depends on the type of mutual fund. For equity funds, it typically takes 3 working days (T+3). Debt funds take around 2 working days (T+2). Liquid or overnight funds are the fastest and may settle in just 1 working day (T+1). The process starts on the transaction day (T), and the payout is done afterward. Weekends and bank holidays are not counted as working days, so your payment might get delayed if your request is placed just before a weekend or holiday.

What is T+1, T+2, and T+3 in mutual fund redemption?

T+1, T+2, and T+3 are terms used to show when you will get your money after placing the redemption request. ‘T’ means the transaction day when you request the redemption. T+1 means you’ll receive money after 1 working day, T+2 means after 2 working days, and T+3 means after 3 working days. For example, if you redeem an equity fund on Monday (T day), the money will be credited by Thursday (T+3). Liquid funds often follow T+1, so if you redeem on Monday, you get your money on Tuesday. These time frames help fund companies process everything correctly and avoid errors.

Why does mutual fund redemption take time?

Mutual fund redemption takes time because the fund house has to first calculate the Net Asset Value (NAV) for the day, then sell the necessary assets from the fund, and finally transfer the money to your account. All this takes at least one full working day. There are also checks done to verify your bank details and confirm your identity. Besides this, banking systems and SEBI guidelines have to be followed. That’s why the entire process takes up to 3 working days for equity funds. It’s done to protect your money and avoid any mistakes or fraud.

Can mutual fund redemption happen instantly?

Yes, some mutual funds offer instant redemption. This is mostly available in liquid funds or overnight funds. With this option, you can withdraw money instantly up to ₹50,000 or 90% of your investment, whichever is lower. The money is transferred to your bank account within a few minutes. However, not all funds provide this facility. Also, there may be daily limits and it works only during working hours. Instant redemption is helpful in emergencies when you need cash quickly.

What affects the redemption timeline of mutual funds?

The timeline for redemption can change based on a few things: the type of mutual fund, the day and time you place your request, the NAV cutoff time, bank holidays, and how quickly your bank processes payments. If you redeem after the cutoff time (usually 3 PM), your request is processed on the next working day. Also, if there's a weekend or holiday in between, the processing is delayed. Funds like equity or hybrid take more time because they are linked with the stock market, while liquid funds are faster due to their short-term nature.

How can you track your mutual fund redemption status?

Tracking your mutual fund redemption is simple. You can check your investment platform, mutual fund app, or broker portal to see your redemption status. It will show you when your request was submitted, which NAV was applied, and the expected payout date. Some platforms also send SMS or email updates. This helps you stay informed and ensures your money is on the way. If there is a delay, you can also contact customer support for help.