How Do You Withdraw Money from Mutual Funds?

Vinod Choudhary
Jan 22
3 min read

Investing in mutual funds is a popular way to grow your wealth, but there may come a time when you need to withdraw your money. Understanding the process of redeeming your mutual fund investments is crucial for managing your finances effectively. In this blog, we'll guide you through the steps to withdraw money from mutual funds, including the platforms you can use and what to expect. Let's dive in!

Understanding Mutual Fund Redemption

Definition:
- Redemption is the process of selling your mutual fund units back to the fund house to withdraw your invested money. The redemption amount is credited directly to your linked bank account.
Key Points:
- Redemption Amount: The amount you receive upon redeeming your mutual fund units.
- Net Asset Value (NAV): The price at which mutual fund units are bought or sold. The NAV is calculated at the end of each trading day.
- Exit Load: A fee charged by some mutual funds if you redeem your units before a specified period.

Steps to Withdraw Money from Mutual Funds

Log In to Your Mutual Fund Platform
- Access your mutual fund account through the Miles Wealth (If you have invested though us), fund house's website, mobile app, or RTA platforms like CAMS, Kfintech, or MF Central.
Navigate to the Redemption Section
- Look for the "Redemption" or "Sell" option in your account dashboard. This is where you can initiate the process of withdrawing your money.
Select the Fund and Units
- Choose the mutual fund from which you want to redeem your units. Specify the number of units or the amount you wish to withdraw.
Review and Confirm
- Review the details of your redemption request, including the number of units, the redemption amount, and any applicable exit loads or charges. Confirm the transaction.
Receive the Redemption Amount
- Once the redemption request is processed, the redemption amount will be credited directly to your linked bank account. This typically takes 1-3 business days, depending on the fund house and the platform used.

Platforms for Mutual Fund Redemption

CAMS (Computer Age Management Services)
- CAMS is a popular platform for mutual fund transactions, including redemptions. You can access your account through the CAMS website or mobile app.
Kfintech (formerly Karvy)
- Kfintech is another widely used platform for mutual fund services. You can log in to your account through the Kfintech website or mobile app to initiate redemptions.
MF Central
- MF Central is a centralized platform that allows you to manage your mutual fund investments across multiple fund houses. You can access your account through the MF Central mobile app.
Fund House Websites and Apps
- Many mutual fund houses have their own websites and mobile apps where you can manage your investments, including redemptions. Examples include HDFC Mutual Fund, ICICI Prudential Mutual Fund, and SBI Mutual Fund.

Things to Consider

Exit Load
- Check if your mutual fund has an exit load and the applicable period. Redeeming your units before the specified period may incur an exit load, reducing your redemption amount.
Tax Implications
- Be aware of the tax implications of redeeming your mutual fund units. Short-term capital gains (holding period less than 1 year for equity funds) are taxed at 20%. Long-term capital gains are taxed at 12.5% for equity funds. For STCG and LTCG arising out of debt investments will be taxed at the applicable tax slab of the individuals.
Processing Time
- The redemption amount typically takes 1-3 business days to be credited to your bank account. Plan your redemption accordingly to ensure you have access to the funds when needed.
Market Timing
- Consider the market conditions and the NAV of the mutual fund before initiating a redemption. Timing your redemption can help maximize your returns.

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Conclusion

Withdrawing money from mutual funds is a straightforward process that can be done through various platforms like CAMS, Kfintech, MF Central, or the fund house's website and mobile app. By understanding the steps involved, considering the exit load, tax implications, and processing time, you can manage your mutual fund redemptions effectively. Start exploring the redemption process today and take control of your mutual fund investments.

Disclaimer: This blog is for educational purposes only. The securities/investments mentioned here are not recommendations.

P.S. If mutual funds are on your mind, check out Miles Wealth! We make investing easy with personalised mutual funds tailored to your risk tolerance and financial goals. No need to be a finance expert or spend hours researching—just invest in funds that truly fit you. Download Miles Wealth today!