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The redemption price of mutual fund units is the close of business NAV of the mutual fund minus the applicable exit load.
Let us say you have 1000 units of a fund that is currently having an NAV of $15 and you have a 0% exit load situation you will be getting $15,000 if you redeem your investment.
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What are mutual fund shares?
Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.
What is the share price of a mutual fund?
The price of a share in a mutual fund (determined by dividing the net value of the fund's assets by the number of shares outstanding) is usually announced once or twice a day.
How and where to sell a closed ended mutual fund?
A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.
How do you write a letter to withdraw your mutual fund shares?
To, The Manager ______________ From, ____________ ____________ ____________ Sir, Sub: Reg. Redemption of Mutual fund investment with folio number _________________ I would like to redeem my mutual fund investment with the fund _________________________________ with folio number _________________ as on today ________________ Kindly process the redemption request and credit the money into my bank account whose details are below: Bank Name: ________________ Acc Num: _________________ Branch: _________________ Thank you, __________________
How to write a letter TO REDEEM your mutual fund shares?
To, The Manager __________ (Fill in the name of the Mutual Fund house in the blanks) From, _____ (Fill in your Name) ______(Fill in your Address & Phone number) _______(Fill in your folio number) Sir, Sub: Reg. Redemption of Mutual fund investment with folio number ______ (Fill in the folio number) I would like to redeem my mutual fund investment with the fund ______(Fill in the fund name) with folio number _____(fill in the folio number) as on today ____(fill in the date) Kindly process the redemption request and credit the money into my bank account whose details are below: Bank Name: _______ (Fill bank name) Acc Num: ________ (fill the Account number) Branch: _______ (fill in the bank branch name) Thank you ________ (Fill your name and sign) Alternately, the fund house may have a mutual fund redemption form which you can fill to service the redemption request.
What are mutual fund shares?
Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.
What is the share price of a mutual fund?
The price of a share in a mutual fund (determined by dividing the net value of the fund's assets by the number of shares outstanding) is usually announced once or twice a day.
How and where to sell a closed ended mutual fund?
A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.
How do you write a letter to withdraw your mutual fund shares?
To, The Manager ______________ From, ____________ ____________ ____________ Sir, Sub: Reg. Redemption of Mutual fund investment with folio number _________________ I would like to redeem my mutual fund investment with the fund _________________________________ with folio number _________________ as on today ________________ Kindly process the redemption request and credit the money into my bank account whose details are below: Bank Name: ________________ Acc Num: _________________ Branch: _________________ Thank you, __________________
Can Indian mutual fund invest in shares and securities abroad?
Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.
How to close an mutual fund account?
You need to submit a redemption request with the mutual fund house where you have mutual fund investments. The fund house would have given you a folio number when you initially invested the money with them. You need to fill that up in the redemption form. Once you submit your request (Usually a redemption form) the mutual fund house will process your request and will repay you the current value of your investment in 3-5 working days.
How to write a letter TO REDEEM your mutual fund shares?
To, The Manager __________ (Fill in the name of the Mutual Fund house in the blanks) From, _____ (Fill in your Name) ______(Fill in your Address & Phone number) _______(Fill in your folio number) Sir, Sub: Reg. Redemption of Mutual fund investment with folio number ______ (Fill in the folio number) I would like to redeem my mutual fund investment with the fund ______(Fill in the fund name) with folio number _____(fill in the folio number) as on today ____(fill in the date) Kindly process the redemption request and credit the money into my bank account whose details are below: Bank Name: _______ (Fill bank name) Acc Num: ________ (fill the Account number) Branch: _______ (fill in the bank branch name) Thank you ________ (Fill your name and sign) Alternately, the fund house may have a mutual fund redemption form which you can fill to service the redemption request.
When you own a mutual fund what exactly do you own?
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
Can a mutual fund investor use a regular account to purchase shares in an open-end fund?
No
What are mutual fund loads?
Mutual fund loads are when you are charged for a purchase of shares/units. You are also charged an one time sale fee.
The number of shares in an open mutual fund changes constantly?
Yes
What is the difference between close ended mutual fund and open ended mutual funds?
An open end mutual fund generally continues to accept investment after the fund is started. As this happens, the fund can grow larger as more investors buy shares in the fund. The open end fund then takes those new dollars and buys additional securities. Shares are priced at the end of day by taking the value of the fund's net asset value divided by the number of shares outstanding. Each share is thus priced at par value to the underlying investments in the fund. To "cash-out" of one's investment, the shares are redeemed by the fund itself, usually after trading is over for the day at the net asset value price for that day. Occasionally, if management of an open end fund feel cash is flowing into the fund to quickly, they may close the fund to new investment, but is still classified as an open end fund. A closed end mutual fund generally accepts investment only during initial setup. After that, shares in the fund are bought and sold similar to a stock on one of the exchanges. The shares may sell at a discount or a premium to the underlying securities owned by the fund, depending on the market. To "cash-out", an investor sells the shares on the exchange at the market price during the trading day. The fund itself is not involved in the day-to-day sale and purchase of fund shares.
