mutual-fund

ICICIdirect launches instant payout facility for mutual fund redemptions

ICICIdirect launches instant payout facility for mutual fund redemptions

Digital investment platform, ICICI Securities Ltd, on Friday announced the launch of e-ATM facility for mutual funds, wherein customers can get instant payout on their MF redemption orders, against two-four working days in the normal cycle. With e-ATM for mutual funds, ICICIdirects customers can get payout within 30 minutes of redemption. The clients would get redemption of 50-70% of their redemption value within 30 minutes, and balance amount as per the payout cycle of the fund, which could be two-four working days. The exact percentage of the instant payout will depend on the fund house and the type of the scheme such as equity, debt or hybrid. ICICIdirect said the facility will come at a nominal cost. The costs start from ₹35 per order for redemption of up to ₹25,000 and goes up to ₹125 plus 0.2% per lakh for redemptions of over ₹1 lakh. The maximum redemption by the investment platform has been capped at ₹10 lakh per customer as of now. The facility will be available even post-market and banking hours. However, if a client redeems amount after 7.30 pm, she or he will get the redemption at 10 am the next working day. As per ICICI Securities, e-ATM for mutual funds can be availed by resident individuals holding their equity, debt, and liquid schemes in demat units. The facility is also available for domestic schemes with international exposure. As of now, asset management companies were providing instant redemption facility for liquid funds. Kedar Deshpande, head-retail distribution, ICICI Securities, said, “After the success of our e-ATM for equities, which provided instant liquidity on sale of shares, our customers had been seeking a similar facility for mutual funds as well. For retail investors, access to money is a very important consideration while making their investment decisions. Their ICICIdirect account is almost like an ATM, wherein they can withdraw money within 30 mins of their share and MF sale. All resident Indian clients of ICICIdirect holding their mutual funds in the demat form are eligible for the facility. Also, all fund houses are covered under the feature. Download.

mutual-fund 2021-10-29 Livemint