{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/investment\/simple-steps-to-withdraw-money-from-mutual-funds\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/investment\/simple-steps-to-withdraw-money-from-mutual-funds\/","headline":"Simple Steps to Withdraw Money from Mutual Funds","name":"Simple Steps to Withdraw Money from Mutual Funds","description":"Life doesn\u2019t always follow a script. Whether it\u2019s a sudden expense, a major milestone, or just a shift in your financial plans, there may come a time when you need to access your mutual fund investments. The good news? It\u2019s not a complicated process. Whether you’re new to mutual funds or have been investing for...","datePublished":"2025-06-24","dateModified":"2025-06-24","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/#Person","name":"CONVONIX Antony","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Simple-steps-to-withdraw-money-from-mutual-funds.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/Simple-steps-to-withdraw-money-from-mutual-funds.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/investment\/simple-steps-to-withdraw-money-from-mutual-funds\/","about":["Investment"],"wordCount":2071,"articleBody":"Life doesn\u2019t always follow a script. Whether it\u2019s a sudden expense, a major milestone, or just a shift in your financial plans, there may come a time when you need to access your mutual fund investments. The good news? It\u2019s not a complicated process.Whether you’re new to mutual funds or have been investing for years, understanding how redemptions work can save you time, money, and stress. Let\u2019s walk you through it\u2014step by step.What Does Redemption from Mutual Funds Mean?Think of mutual fund redemption as cashing out. You sell a portion\u2014or all\u2014of your units in a scheme, and in return, the equivalent amount (based on the day\u2019s NAV or Net Asset Value) is transferred to your registered bank account.Most mutual funds in India allow you to redeem units on any business day. Once your request is processed, the funds usually reach your account within two working days (T+2), although this can vary slightly depending on the platform or AMC.Types of Mutual Fund RedemptionsYou have options when it comes to withdrawing your money. Here are the common ways investors redeem their mutual fund investments:Full Redemption: Want to exit completely? You can sell all your units and withdraw the entire amount.Partial Redemption: Need only part of the money? Redeem some units and let the rest stay invested.Systematic Withdrawal Plan (SWP): Prefer a steady cash flow? You can set up regular withdrawals\u2014monthly, quarterly, or at any interval you choose.Also Read: Mutual Fund e-KYC: Documents Required, Process, and Status CheckSteps to Withdraw Money from a Mutual FundNo matter where you\u2019ve invested\u2014via your bank, AMC, or a third-party app\u2014the steps are usually similar:Log into your mutual fund account or investment portal.Choose the scheme you want to withdraw from.Enter how many units or how much money you want to redeem.Confirm your bank account details.Hit submit.That\u2019s it! The amount gets credited based on the applicable NAV and standard processing timelines\u2014usually within 1 to 3 business days.Can You Withdraw Mutual Funds Anytime?Yes\u2014but with some conditions.Open-Ended Funds: These are flexible. You can usually redeem them on any working day. But certain schemes, like ELSS, have a mandatory 3-year lock-in.Closed-Ended Funds: These are less flexible. You can only withdraw once they reach maturity.And don\u2019t forget to check for exit loads. Some funds charge a small fee if you redeem too soon.How to Withdraw Mutual Funds Online?These days, withdrawing money is as easy as shopping online. Here\u2019s how you can do it:Via your bank\u2019s online platform: Login, select your mutual fund, and follow the redemption instructions. If you’re using IndusInd Bank\u2019s Wealth portal, it\u2019s a smooth ride.Through AMC websites: Head to the fund house’s site, enter your folio number, and place a redemption request.Registrar platforms: Use services like CAMS or KFintech to manage and redeem across multiple AMCs.Third-party apps: Platforms like Groww, Zerodha, and Paytm Money let you redeem directly through their apps.Most platforms also show the status of your redemption, so you know exactly when to expect the funds.Things to Consider Before Withdrawing Mutual FundsWithdrawing might seem simple, but a little planning can go a long way. Here are a few things to keep in mind:1. Exit Load and Holding PeriodIf you pull out your money too soon, you might lose a small percentage as an exit load\u2014typically 0.25% to 1%.Tip: Check your scheme document or fact sheet. Waiting just a few more days could save you money.2. Tax ImplicationsRedemptions can attract capital gains tax. However, there have been certain changes in how much tax the government levies depending on when you have purchased the mutual fund units that you are planning to redeem.Equity FundsShort-Term Capital Gains (STCG): If held for less than 12 months, gains are taxed.Long-Term Capital Gains (LTCG): Gains above \u20b91 lakh in a financial year are taxed (without indexation).Debt FundsCapital gains from debt mutual funds are taxed as per the investor\u2019s income slab.Tip: If you’re just weeks away from completing 12 months, waiting could offer tax advantages.Check out this table to understand taxation on redemption of Equity and Debt Mutual Funds:Fund TypeHolding PeriodTax Rate (On MF Units purchased before 31st Mar 2023)Tax Rate (On MF Units purchased after 31st Mar 2023)STCGLTCGSTCGLTCGEquity Funds12 Months20%12.5%20%12.5%Debt Funds24 MonthsSlab Rate12.5%Slab RateSlab Rate3. Lock-in PeriodSome funds just don\u2019t let you redeem right away:ELSS (Equity Linked Savings Scheme): Locked in for 3 years.Children\u2019s Funds or Retirement-Oriented Funds: May have age-based or goal-based restrictions.Tip: Always double-check before placing a request.4. NAV Cut-off TimingThe Net Asset Value (NAV) applied to your redemption depends on when your request is submitted and whether the funds are available in your folio.As per SEBI guidelines, same-day NAV is applicable only if the redemption request is submitted before 3:00 PM, along with full availability of units.Tip: A late request means the next day\u2019s NAV applies\u2014which could make a difference in volatile markets.Also Read: What is NAV in Mutual Funds & How is it Calculated?5. Market ConditionsIt\u2019s tempting to redeem when markets dip\u2014but acting out of fear can lead to losses.Tip: If your goals are long-term and there\u2019s no urgent need, staying invested might be the smarter move.6. Impact on Financial GoalsAsk yourself: Why am I redeeming?If this fund was meant for something important, like retirement or a child\u2019s education, pulling out early could derail your plans.Tip: Differentiate between a need and a want. Redeem only if it makes financial sense.7. Systematic Withdrawal vs Lump SumIf you need regular income, consider setting up a Systematic Withdrawal Plan instead of redeeming everything.Tip: SWPs help maintain your capital while giving you a monthly payout\u2014ideal for retirees or anyone needing steady cash flow.By keeping these factors in mind, you can make more informed decisions and ensure your mutual fund withdrawal aligns with your overall financial strategy\u2014not just short-term needs.Wrapping Up!Withdrawing money from mutual funds doesn\u2019t have to be stressful. A little know-how goes a long way. By understanding the types of redemptions, key rules, and things to watch out for, you can make decisions that fit both your immediate needs and long-term goals. Still unsure? Reach out to a certified financial advisor or talk to your bank\u2019s relationship manager. It\u2019s always better to ask than to guess.Share This:"}