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How To Withdraw Money From Mutual Funds?

Published On Oct 14, 2021 10:00 AM By InsuranceDekho

The majority of mutual funds are liquid investments, which means they can be withdrawn at any time. Some funds, on the other hand, have a lock-in term. The Equity Linked Savings Scheme (ELSS), which has a 3-year maturity period, is one such scheme. However, once the lock-in period is over, an investor has the option to partially or fully redeem the scheme or to stay engaged for a longer length of time. Let's look at how to get money out of a mutual fund scheme.

What Does Redemption From Mutual Funds Mean?

The process of liquidating your investments is known as withdrawal. This is referred to as redemption in mutual funds. You redeem the units when you take money from a mutual fund scheme. You sell the units you possess and are paid the corresponding NAV for them. Take, for example, a Rs. 10,000 investment in a mutual fund plan. You can redeem or sell a certain number of units or withdraw a specific amount of money. 

How To Withdraw Money From Mutual Funds?

Withdrawing funds from a mutual fund plan is a straightforward process. Your cash can be redeemed in a variety of ways. 

1. With the Help of a Broker or Distributor

You can withdraw money from a mutual fund scheme through a broker or distributor if you invested through them. You can make contact with your broker and request a withdrawal. You must fill out and submit a withdrawal request form if you wish to make a withdrawal offline. The Asset Management Company would receive the form from the broker. On the other hand, if the broker offers an online service via a portal or mobile app, you can also redeem online. You can log into your mutual fund account, select the withdrawal option, enter the quantity of units you wish to withdraw, and your request will be completed in real time.

2. Through the Asset Management Company

You can redeem your mutual fund plan directly with the AMC. You have the option of visiting an AMC branch office and submitting an offline withdrawal request, or you can do it online. You can simply go to the AMC's official website or download its mobile app to seek redemption.

3. With the Help of Registrar and Transfer Agents  

They can assist you in investing in mutual fund schemes as well as withdrawing from them through the R & T Agent. By submitting an offline or online withdrawal request to R&T Agents, you can withdraw your funds.

4. Through Your Demat And Trading Account

If you used a Demat and trading account to invest in mutual fund schemes, you can also withdraw from these accounts. To check your mutual fund investment, go into your account, select the amount you wish to withdraw, and submit your request. The redemption will be handled and the funds will be credited to your associated bank account once the request has been validated.


If you need money right away, your mutual fund assets can be a speedy supply of cash. The benefit of mutual fund investments is that you can redeem them in unit or money terms, and you can do so partially or completely. Mutual fund investments, in this sense, provide flexibility in terms of redemptions. You can learn how to withdraw money from a mutual fund and whether to do so online or in person. Moreover, when redeeming your mutual fund units, keep in mind the exit load and tax implications.

Also read - Is It Safe To Purchase A Term Insurance Plan Online?

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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