I am 45 years married and residing in Arisikere. I have invested INR 3 Lakh in equity mutual funds, INR 4 Lakhs in debt mutual funds and INR 1 Lakh in liquid funds. I have a query. I want to redeem all these mutual funds. A friend has told me that since I am redeeming more than INR 2 Lakhs the normal T+3 Duration for equity mutual funds and the T+1 Duration for debt mutual funds does not hold. Is this true?
When it comes to redemption, the amount of redemptions does not matter. So even if you redeem more than INR 2 Lakhs, it shouldn't be a problem. As you pointed out, for domestic equity funds (that is, funds that invest in the Indian stock market), the redemption pay-out timeline is typically three business days (T+3). So, if you make a redemption on Monday, the money would be in your account by Thursday. For general debt funds (other than liquid funds), the same timeline is two business days (T+2). For liquid funds, you will get the money within one business day (T+1). Also, in the case of liquid funds, there are certain fund houses that make money available within half an hour even if the redemption is made in the weekends or holidays. Please verify if the liquid fund that you invest in offers such a service.
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