Hello everyone, I’ve invested in mutual funds but might need my money or want to switch funds. In 2025, how can I redeem my mutual fund units or switch them to another fund?
That’s a very useful question because many investors start SIPs but later don’t know how to redeem or switch their mutual fund units. Let’s go step by step.
How to Redeem or Switch Your Mutual Fund Units
If you don’t know well, redeeming means withdrawing your money from mutual fund. And if you’re switching your money then it means that you’re moving your investment from one scheme to another within the same fund house. And both of these can be done online.
How to Redeem Units
- You can login to the fund house app or website where you can select your scheme and choose redeem option, enter units you want and confirm.
- If your units are in demat form then you van redeem them via your broker’s platform.
- If you are doing it offline then you need to submit a redemption form at AMC office or distributor.
- This money will be credited to your bank account which is linked to MF within 2 to 5 working days.
How to Switch Units
- You can switch from one fund to another in the same fund house.
- You need to choose the switch option online or fill an offline switch form.
- You must know that the switch is treated as redemption from one scheme and fresh investment in another, so there are chances that tax may apply.
Redemption Timelines for Different Fund Types
| Fund Type | Typical Payout Time |
|---|---|
| Debt Funds | 1–2 working days |
| Equity Funds | 2–4 working days |
| Liquid/Overnight Funds | Same day or T+1 day |
Check Before Redeeming or Switching
| Factor | Why It Matters |
|---|---|
| Exit Load | Charges may apply if redeemed early |
| Tax Impact | Short-term/long-term capital gains tax applies |
| Market Condition | Redeeming in panic may reduce returns |
| Goal Alignment | Ensure withdrawal matches your financial goal |
I’ve been holding some mutual fund units for the past few years, and now I’m a little confused about the process. How can I redeem my mutual fund units or switch them to another scheme within the same fund house?
It’s great that you’re thinking about your next steps with your mutual fund investments. Redeeming or switching your mutual fund units is actually quite simple, but the process depends on how you originally invested.
For Redemption:
If you invested through an online platform (AMC website, registrar like CAMS/KFintech, or your broker’s app), you can log in and place a redemption request. The money will usually be credited to your registered bank account within T+1 to T+3 working days, depending on the scheme type.
If you invested offline, you can fill a redemption form at the AMC branch or with the registrar, and the proceeds will be transferred to your bank.
For Switching:
A switch means redeeming units from one scheme and reinvesting into another within the same AMC. You can request this through the AMC portal, registrar, or your distributor.
Do keep in mind that exit loads (if applicable) and capital gains tax may apply.
This way, you have full flexibility—whether you want to cash out or move into another fund that better matches your goals.
For official guidance, you can check AMFI’s detailed investor section here:
https://www.amfiindia.com/investor-corner/know-your-mutual-fund