Redemption is the process by which mutual fund investors sell their units back to the mutual fund at the applicable net asset value (NAV). When you are investing in a mutual fund, you get a certain number of units in exchange for the money you put in.
Hence while redeeming/selling your mutual fund investments, you sell your units back for your money invested in that fund.
How To Redeem On Groww?
Redemption on Groww may take just a couple of minutes. On Groww, we give you the option to redeem in terms of units and amount as well. For both modes of redemption, the applicable units and value of an investment will be clearly mentioned.
Let’s look at the step-wise process of how to redeem your mutual fund investments on Groww:
Step1: Go to ‘Dashboard’. Tap on ‘dashboard’ at the bottom of the screen to see all your mutual fund investments.
Step 2: Choose the mutual fund investment you want to redeem.
To redeem money from a mutual fund, simply tap on the fund and then tap ‘Redeem’.
Step 3: Enter the number of units or amount you want to redeem.
On Groww, we allow you to redeem your mutual fund investments by entering a certain number of units or by directly entering the amount you want to redeem.
You can choose the toggle next to ‘Enter’.
Step 4: Redemption in Groww Balance or Bank Account
You can wish to receive the redeemed amount in your Groww balance amount or your bank account. This step lets you choose between the two options.
Step 5: Enter your Pin or verify using your fingerprint.
Step 6:Confirmation
In the next step, you will see a confirmation of the redemption order placed with a few details on the applicable NAV for your order.
Important Update for Mutual Fund Investors on Groww
Due to a new SEBI regulation, there have been a few changes in the mutual fund redemption process.
- Linked Bank Account Requirement: The mutual fund redeemed amount will now be credited only to the bank account linked to your mutual fund folio.
- Verification Process: While redeeming, the Groww app will show you which bank account is linked to your folio. After redemption, the mutual fund house will verify if the account is valid and matches the folio holder’s name.
- Possible Request for Additional Documents: AMCs (Asset Management Companies) may ask for documents like bank statements for verification.
- Physical Cheque for Failed Verification: If verification fails, the redeemed amount will be sent via physical cheque to the address linked to your folio.
- Potential Delays: Due to the new process, updates from the AMCs and RTAs (Registrar and Transfer Agents) to Groww might be delayed, causing some delays in updating your dashboard on the app.
Updating Your Linked Bank Account-
If your linked bank account is not functional or you want to link a different account, follow these steps on the Mfcentral website:
- Sign in or sign up on Mfcentral.
- Click ‘Submit Service Requests’ and then ‘Change of bank account details’.
- Select the folio and submit the change.
- Upload new bank account details and documents, then submit.
- Processing Time: It may take 10-15 days to map new account details, after which you can place a redemption order.
For any concerns, you can reach out to our 24*7 customer support team. We’re here to help resolve any issues as quickly as possible.
