# How long a mutual fund redemption takes

Liquid funds usually pay the next working day and equity funds two working days after the redemption date. That date depends on when you place the request.

Full page: https://discovermf.com/guides/redemption-time
Last checked 23 Oct 2026, from DiscoverMF.

A redemption is paid in working days, counted from the **redemption date**: the business day whose [NAV](https://discovermf.com/glossary/nav) your units are sold at. [How to redeem](https://discovermf.com/guides/redeem-mutual-fund) covers placing the request; this one covers when the money arrives.

## The redemption date

The [cut-off time](https://discovermf.com/glossary/cut-off-time) for redemptions is **3 pm** on a business day. A request in before 3 pm gets that day as its redemption date. A request after 3 pm, or on a weekend or holiday, gets the next business day.

Business days are Monday to Friday, except days when the stock exchanges or banks are closed.

## How many working days

| Kind of fund | Money usually arrives |
|---|---|
| Liquid and overnight funds | The next working day |
| Equity funds | Two working days later |
| Other debt funds and hybrid funds | Within three working days, often sooner |
| Funds with at least 80% invested overseas | Up to five working days later |

The rule is that a fund house pays within **three working days** of the redemption date, with a few exceptions such as funds investing mostly overseas.

## Examples for an equity fund

| You place the request | Redemption date | Money arrives |
|---|---|---|
| Monday, 11 am | Monday | Wednesday |
| Monday, 4 pm | Tuesday | Thursday |
| Friday, 4 pm | Monday | Wednesday |
| Saturday | Monday | Wednesday |

A holiday in the middle moves the date one working day later.

## Faster: instant redemption

Some liquid funds pay up to ₹50,000 a day, or 90% of your holding in the scheme if that is lower, to your bank within minutes. It is open to resident individuals, and not every fund offers it.

## What can hold a payment up

- **A bank account added recently.** A fund house can hold a payment to a newly registered bank account for up to 10 days after the change, as a safeguard.
- **Bank details that fail.** A closed account, or a name that does not match, makes the payment bounce. Update the bank account in the folio, and the fund house pays again.
- **Paper requests.** The redemption date is set when the form reaches the fund house or the registrar, not when you post it.
- **Locked or pledged units.** [ELSS](https://discovermf.com/guides/elss-tax-saving) units cannot be redeemed for three years from each purchase, and units pledged as security for a loan are released only by the lender.

## Tracking a redemption

The fund house sends an email or SMS when the redemption is processed, with the NAV and the amount. The request also shows on the fund house's website and on [MF Central](https://discovermf.com/guides/mf-central). The credit in your bank statement carries the fund house's or the scheme's name.

If the money is late, write to the fund house with the folio number and the request date. A fund house that pays after the deadline owes you interest for the delay, at 15% a year.

## Questions

### My redemption has not arrived after three days. What should I check?

Count working days from the redemption date, not from the day you placed the request, and skip weekends and holidays. If the money is still missing, check the bank account registered in your folio and write to the fund house.

### Does a request placed in the morning get paid sooner?

Placing it before the 3 pm cut-off on a business day makes that day the redemption date, which can bring the money a day sooner. Within the day before the cut-off, the time makes no difference.

### Are Saturdays counted as working days?

No. Saturdays, Sundays and days when the stock exchanges or banks are closed do not count.