what do u mean by redeem of mutual fund
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Sridhar K.
Head-BFSI at TalentSprint
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Popuri,
A transaction which enables the investor to 'encash' his investment is called Redemption.
When one invests in an Open Ended Mutual Fund Scheme (which allows you to transact in the scheme on all the working days) he gets allotted UNITS based on the Net Asset Value (NAV) declared by the scheme as on the date of purchase.
The units so obtained by an investor can be REDEEMED or 'withdrawn' by the investor current NAV. By Definition redmeption means: "The paying off or buying back of units of a mutual fund by the issuer."
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Paul E.
Retirement Plans, Planning, and Investments
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When you redeem it, you are selling your shares for cash.
