Mutual Funds Redemptions to be Allowed on September 29: Sources

• Mutual funds redemptions to be allowed on September 29: Sources
• Moneycontrol
• Published: September 28, 2023

Mutual fund redemptions will be allowed on September 29, sources have told Moneycontrol. This is despite the fact that September 29 is a bank holiday in India.

The Association of Mutual Funds of India (AMFI) is reportedly declaring September 29 as a business day for mutual funds, specifically for the purpose of facilitating redemptions. This is because many investors had put in redemption requests on September 27, and these would have normally been processed on September 28. However, due to the bank holiday, the redemptions would have been delayed until October 3.

By declaring September 29 as a business day, AMFI is ensuring that investors will receive their money on time. This is a welcome move, and it is likely to be appreciated by investors.

What this means for investors:

If you had put in a redemption request on September 27, you should receive your money on September 29. However, if you put in a redemption request on September 28 or later, your redemption will be processed on the next business day.

How to redeem mutual funds:

To redeem mutual funds, you can either contact your mutual fund company directly or you can redeem your funds through your online trading account. If you are redeeming your funds through your online trading account, the redemption request will usually be processed within 1-2 business days.

Important things to remember:

• When redeeming mutual funds, you will need to pay an exit load, if applicable.
• The exit load varies from fund to fund, so be sure to check the exit load before redeeming your funds.
• You will also need to pay taxes on the capital gains that you make when you redeem your funds.
• If you are redeeming your funds before one year, you will have to pay short-term capital gains tax at a rate of 30%.
• If you are redeeming your funds after one year, you will have to pay long-term capital gains tax at a rate of 20%.

Conclusion:

The fact that mutual fund redemptions will be allowed on September 29 is a good news for investors. This will ensure that investors receive their money on time. If you are planning to redeem your mutual funds, be sure to check the exit load and the tax implications before redeeming your funds.