When can I take my money out of a mutual fund?


Editorial team Published on

You can withdraw money from most open-ended mutual funds on any business day.

General Timing and Rules

  • Standard Funds: You can redeem your shares anytime, and requests are typically processed at that day’s Net Asset Value (NAV) if submitted before the market cut-off time.
  • Lock-in Periods: Certain specialized funds—such as tax-advantaged equity-linked savings schemes (ELSS)—have mandatory lock-in periods (like 3 years), meaning you cannot withdraw until that time passes.
  • Retirement Accounts: If your mutual funds are held in a retirement account like an IRA, withdrawing before age 59½ may trigger early withdrawal taxes and penalties.

Fees and Processing Time

  • Exit Loads: Some funds charge a small fee (an exit load) if you sell your shares within a short window, such as the first 3 to 12 months.
  • Payout Speed: Once your request is processed, funds are typically transferred to your bank account within 1 to 3 business days.