How can I sell my mutual fund in Zerodha? (2024)

FAQs

How can I sell my mutual fund in Zerodha? ›

Free direct MF

All direct mutual fund investments are absolutely free — ₹ 0 commissions & DP charges.

Free direct MF

All direct mutual fund investments are absolutely free — ₹ 0 commissions & DP charges.

Directly via AMC Or Distributors

Most of us directly buy Mutual funds from the AMC or the Mutual Fund House itself or through distributors like Groww. All these provide us with an online platform where you can buy, monitor or sell your mutual funds.

Selling mutual fund shares

Mutual fund shares are sold the same way that they're bought: either through the fund company directly or through your broker. You'll receive the next available net asset value as your price for each share sold. You'll also have to pay any applicable fees or charges.

You can redeem your mutual fund units held in demat form through your DP or stock broker. Obtain Redemption Form (RF) from your DP. Fill-up the RF and sign it. Incase of joint holders, all holders should sign the form.

Mutual Fund: Investing through Zerodha Coin

With the help of the order collecting platform Coin, you can directly purchase mutual funds online from asset management firms without paying any commission. Through this app, you can avail all your mutual funds, equities, currencies, bonds, and other assets at one place.

The most common question is whether one can withdraw mutual funds at any time. The answer is yes; however, there are certain things to keep in mind while withdrawing your mutual funds.

You can enter an order to buy or sell mutual fund shares at any time, but your trade won't be executed until the closing of the current trading session or the next trading session if you place your order after hours.

Directly through AMC

If you have invested in a mutual fund directly with the asset management company (AMC), then you can redeem using their online portal. You can choose to sell some units or all, as per your requirement. One can also redeem units offline by visiting the AMC office.

Is there a fee to sell mutual funds? ›

Some funds cover the costs associated with an individual investor's transactions and account by imposing fees and charges directly when investors buy or sell a fund, while others charge fees periodically to all shareholders in the fund.

However, if you have noticed significantly poor performance over the last two or more years, it may be time to cut your losses and move on. To help your decision, compare the fund's performance to a suitable benchmark or to similar funds. Exceptionally poor comparative performance should be a signal to sell the fund.

There are different ways to redeem a mutual fund – through an asset management company (AMC), an agent or directly through your personal demat account.

Can I withdraw money from mutual funds anytime? Yes, you can withdraw money from most mutual funds anytime, unless they have a lock-in period.

Most AMCs have a dedicated web portal, mobile application, and relationship manager for their investors. If you have purchased your mutual fund units through an AMC, you can simply log in to the portal/app and select the mutual fund and the units you want to redeem. You can choose to sell some units or all.

Some investors also may consider selling fund shares before a distribution to avoid the tax due. If the investor had gains on the shares at the time of the sale, the realized gains would be taxable in the year the shares were sold.

Some funds also require that you pay a sales commission when you buy, sell, or exchange the fund. The charges you pay to buy or sell shares of a fund, plus the annual costs you pay that are associated with operating the fund, affect how much you receive from your investment.

What Price Do I Get When I Sell a Mutual Fund? The sale price for mutual fund shares is the next available net asset value. This is determined once the market closes. So if you put in a redemption request at 2 p.m. today, the net asset value used to calculate your payout is posted at the end of the trading day.

By regulation, the maximum permitted sales charge is 8.5%, but most loads fall within a 3% to 6% range. The level of sales charge an investor incurs often depends on the specific share classes of a fund.