Mutual Fund Investment:
There is excellent news for you if you invest in mutual funds. Because now you will be able to withdraw the invested amount earlier. Your money will come only after two days of selling the unit.
Companies will make payment within two days (T plus 2) of the transaction after the investors redeem the units of equity schemes from February 1, i.e., Wednesday.
Currently, mutual fund units send money to investors in their bank accounts within three days after unit redemption is completed.
Explain that this step is in line with the settlement system within a day of trading in the stock market. This will be of great benefit to mutual fund investors.
Akhil Chaturvedi, a chief business officer of Motilal Oswal AMC, terming the initiative as a positive, said that it would provide quick access to cash to investors, and they can use it for reinvestment or meeting obligations promptly.
In the domestic stock market, from January 27, the settlement of deals is now being done within a day (T+1) after trading.
Due to this, the settlement time has been reduced by one day, and the amount received from the share sale will reach the investors quickly.
Payment arrangements will be implemented within two days
Mutual fund body ‘Association of Mutual Funds in India’ (Amfi) said in a statement that to pass on the benefit of this arrangement to mutual fund investors,
it has been decided that all asset management companies will be able to redeem units in equity schemes from February 1. We will implement the payment system within two working days.
A Balasubramaniam, Managing Director of Aditya Birla Mutual Fund and Chairman of AMFI, had said that he wants to give its benefits to mutual fund investors.
That’s why we are actively adopting the T+2 mechanism for equity-related schemes.
On the other hand, N S Venkatesh of AMFI said that from the day SEBI announced the implementation of the system of ‘T+1,’ i.e.,
within one day of trading in the stock market in a phased manner, the industry has started making payment after unit redemption. I had begun taking steps to reduce the time taken.