If Investing in MFs is good, keeping track is
Investing is only the first step. It is what you do with your investment that matters. Once you have invested, you need to keep track of theactual performance. The fill-it and shut-it approach is hardly going to get the desired results. Not that you need to fret over the performance on a daily basis in cases of investment horizons of more than a year, but keeping a check and being aware of the progress of your investment is a good practice. After all, everything from your car to your body needs to undergo periodic health check-ups.
Most people assume that the answer to this question is more likely to be complicated. Hardly! In reality withdrawing or Redemption as it is known is Mutual Fund terms, is very simple. All one has to do is fill out a redemption request form (generally the perforated part at the end of your account statement). You can either mention the amount or the number of units that you want to redeem. The request then needs to be signed by the relevant account holders and submitted to a designated investor centre of your concerned fund house. There are also pre-designated cut-off times for each type of scheme and based on these cut-off times, you can get your redemption proceeds. In case your request is received post the cut-off times, your application will automatically get processed on the next business day. Some fund houses permit you to redeem online on their websites or one can even call them up for redemptions.
As per prevalent SEBI regulations, a Mutual Fund is required to dispatch dividend proceeds within 30 days of dividend declaration and within 10 business days from the date of redemption. Failure to do so and the fund house is liable to compensate the investor @15%.