I had invested in a three year closed ended fund last year. Now I want to redeem part of the money. Can I redeem it?
Units of closed ended funds can be redeemed with AMC only at the time of maturity
I had invested in a three year closed ended fund last year. Now I want to redeem part of the money. Can I redeem it?
Deepak Mittal, Noida
The advantage of investing in mutual funds is such that they provide immense liquidity and flexibility to redeem one’s investments. As units of closed ended funds can be redeemed with AMC only at the time of maturity; it is recommended that investors invest only that amount of money which will not be required during the lock-in tenure. Even though these are closed-end funds, in case of any emergency, you can sell these units through exchange as the units of closed ended schemes are listed on stock exchanges.