One of the biggest advantages of Mutual Funds is liquidity – the ease of converting an investor’s units into cash.
Mutual Funds, being regulated by Securities and Exchange Board of India (SEBI), have well laid out norms to ensure liquidity. Open end schemes, which comprise of a large majority of schemes, offer liquidity as a major feature. Liquidity is ease of access or conversion of an asset into cash.
Once the redemption is complete, funds are transferred to the designated bank account of the investor, within 3 business days after the redemption was lodged.
However two issues need to be kept in mind. One, there may be an exit load period in certain schemes. In such cases, redemptions before a certain specified period,
Read more287
289