LIC mutual fund offers instant redemption facility

LIC Mutual Fund has introduced an instant redemption facility in its liquid fund – Growth option. Investors in LIC MF Liquid Fund – growth option will now have access to their funds throughout the day, 365 days a year. Currently, this facility is available only to individual investors only for transactions through the online portal of LIC Mutual Fund.

A daily limit of Rs 50,000 or 90 per cent of redeemable value of the folio(s) held by the investor at PAN-level, whichever is lower, is offered by the fund house subject to the limits prescribed by SEBI. The redemption payout happens through the IMPS platform of the designated bank, which credits the money into investors’ bank account within a few minutes after placing a valid online redemption request. LIC MF has done a tie-up with RBL Bank for using their payment platform for instant redemption facility.

Raj Kumar, Chief Executive Officer, LIC Mutual Fund said, “This feature facilitates an added instant liquidity and convenience to the investors. With this change, it makes sense for investors to shift money from savings account to liquid funds as most savings accounts offer less than 4 per cent rate of interest whereas liquid funds yield higher returns.”


Instant redemption facility will not only give investors immediate access to their funds but will also make them earn more on their idle money.