Why I can't redeem (sell) my mutual funds? It shows units unavailable. (2024)

FAQs

Why I can't redeem (sell) my mutual funds? It shows units unavailable.? ›

Mutual funds are typically traded at the end of the trading day at the net asset value (NAV) price. If you are trying to redeem or sell your units outside market hours, you may see a message indicating that the units are unavailable. Make sure you are attempting the transaction during the designated trading hours.

The units you are trying to sell are yet to be allocated to your account. Once the purchase order has been placed successfully, it takes up to 4 working days for the units to be allocated. Sell order can be placed only after you are able to see the units allocated in your MF dashboard.

Mutual funds can only be bought and sold after the market closes at the fund's net asset value (NAV).

A lock in period in mutual funds is the time period in which investors cannot sell, withdraw or redeem their mutual fund units. Simply put, investors are obligated to remain invested for a specific time period and it's advisable not to withdraw money right away once the mutual fund lock in period ends.

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If you have purchased your mutual fund units through an AMC, you can simply log in to the portal and sell your units. Investors can choose to redeem some units or all units based on their preference. Some AMC's also have mobile applications through which you can do the same process.

Some mutual funds have a lock-in period, which means you cannot redeem your units before a certain time. For example, tax-saving funds (ELSS) have a lock-in period of three years.

To redeem your ELSS units, you need to submit a redemption request to the respective Mutual Fund (MF) house or through your chosen investment platform. The fund house will process your request and credit the proceeds to your bank account.

How Long Do You Have to Hold a Mutual Fund Before Selling? You're allowed to sell your mutual fund holdings at any time after buying shares.

Often there are times when we investors need to liquidate or encash our holdings in mutual funds owing to a personal financial emergency or to invest in a better investment scheme. The exit from the mutual fund scheme is called mutual fund redemption. This can be done in parts (specific units) or can be exited wholly.

Mutual fund redemption

Redemption is usually done when the investor needs funds, the objective of the investment is fulfilled, or when the financial plan review demands a change in allocation, or the scheme is not able to deliver desired results.

How do I redeem a locked in mutual funds coin? ›

You must complete and submit a withdrawal request form if you want to withdraw offline. The state would be given to the Asset Management Company by the broker. On the other hand, you may also redeem online if the broker provides a service online through a site or mobile app.

Redemption of Units - online

You simply have to log-on to the 'Online Transaction' page of the desired Mutual Fund and log-in using your Folio Number and/or the PAN, select the Scheme and the number of units (or the amount) you wish to redeem and confirm your transaction.

It also depends on the type of scheme you subscribed to. If it is a debt-oriented fund or a liquid fund, you will get redemption money within one or two working days. On the other hand, if it is an equity mutual fund, it may take two to three working days to receive the money in your bank account.

This process is known as mutual fund redemption, and it can be carried out either partially, by selling specific units or in its entirety. It allows investors to convert their mutual fund units back into cash.

You can easily redeem your mutual funds directly through the Asset Management Company (AMC) or via a distributor. Simply visit the AMC's website or get in touch with an authorised distributor, provide your folio number, and the amount or number of units you wish to redeem.

Your redemption request could be rejected due to one of the following reasons: Request was for a higher number of MF Units than available. You are trying to sell an ELSS before its lock-in period. You are trying to sell your MF before receiving its allocation which generally takes 3-4 days post buying.

Investors have multiple methods for redeeming mutual fund units: Online through a mutual fund platform: If you initially purchased mutual fund units through a mutual fund trading platform, you could place a sell order through the same platform. The proceeds will be credited to your linked bank account.