How to redeem mutual funds on Groww — step by step
Redeem mutual funds on Groww in 4 minutes. This step-by-step guide covers the exact taps to make and when the money hits your bank account.
Redeeming mutual funds sounds like it should be complicated. It isn’t. If you can book a train ticket on IRCTC, you can do this. The whole process takes about four minutes, and the money lands in your bank account within a couple of days.
Here’s exactly what to do — and a few things worth knowing before you tap that button.
Before You Redeem, Check These Two Things
The first thing to check is whether your fund has an exit load. Exit load is a small fee the fund house charges if you leave too early — it’s basically a penalty for short-term redemptions. Most equity mutual funds charge 1% if you redeem within one year of investing. So if you’re pulling out ₹2,00,000 that you invested eight months ago, you’ll lose ₹2,000 straight off the top. If you’ve held it for over a year, most funds charge nothing.
The second thing to check is tax. Equity funds held for more than a year attract Long Term Capital Gains (LTCG) tax at 10% on gains above ₹1,25,000 in a financial year. Hold for less than a year and it’s Short Term Capital Gains (STCG) at 20%. Say you invested ₹1,50,000 in a Nifty 50 index fund two years ago and it’s now worth ₹2,10,000. Your gain is ₹60,000 — that falls below the ₹1,25,000 threshold, so you owe zero tax. Now if you had three such funds and your total gains across all of them crossed ₹1,25,000 in the same year, only the amount above that threshold gets taxed at 10%.
Neither of these should necessarily stop you from redeeming. But you should know the numbers before you go in.
The Actual Steps on Groww
Open the Groww app and tap on “Investments” at the bottom of the screen. This shows you everything you hold — mutual funds, stocks, the works. Tap on “Mutual Funds” specifically.
You’ll see a list of all your mutual fund holdings. Tap on the fund you want to redeem. On the fund’s detail page, you’ll see a red button at the bottom that says “Withdraw”. Tap that.
Groww will now ask you whether you want to withdraw a specific amount (in rupees) or a specific number of units. If you put in ₹10,000 every month via SIP into an HDFC Flexi Cap Fund and you want to pull out exactly ₹25,000 to cover an emergency, choose the rupee option and type in 25000. Groww calculates the units for you.
If you want to exit the fund entirely, there’s a toggle that says “Withdraw All” — use that instead of trying to calculate the exact unit count yourself.
Before the final confirmation screen, Groww shows you the estimated amount you’ll receive and flags any exit load if applicable. Read this screen. It takes ten seconds and prevents surprises. Then tap “Confirm Withdraw” and enter your Groww PIN or biometric.
Done. That’s it.
When Does the Money Actually Arrive?
For equity mutual funds, redemption is processed at the NAV (Net Asset Value — basically the per-unit price of the fund) of the day you submit the request, as long as you do it before 3 PM on a market day. NAV is calculated end-of-day, so even if you submit at 11 AM, you get that day’s closing NAV, not a real-time price. Submit after 3 PM and you get the next business day’s NAV.
The money hits your registered bank account in 2 to 3 business days for equity funds. Debt funds settle in 1 business day. Liquid funds can settle same-day if you redeem before the cut-off, though this varies by fund house.
So if you redeem a Mirae Asset Large Cap Fund on Monday before 3 PM, expect the money in your account by Wednesday or Thursday. Plan accordingly — don’t redeem on Friday afternoon expecting cash before the weekend.
One Thing People Often Get Wrong
A lot of people panic when they see “units redeemed” in their notification but the money hasn’t arrived yet. The transaction has gone through. The T+2 settlement period is normal and mandated by SEBI (the Securities and Exchange Board of India, which regulates the mutual fund industry). There’s nothing to call customer care about. The money is coming.
Frequently Asked Questions
Can I cancel a redemption request after submitting it on Groww?
No. Once you confirm a mutual fund redemption on Groww, it cannot be cancelled. The request is submitted to the fund house immediately. If you’ve tapped confirm by mistake, contact Groww support right away, but there’s no guarantee they can reverse it once it’s been processed.
Does Groww charge any fee to redeem mutual funds?
Groww charges zero fee for mutual fund redemptions. Any deductions you see come from the fund house itself — typically exit load if you’re within the lock-in or short-exit period, not from Groww.
What if I only want to stop my SIP but not redeem what I have?
Go to the fund on Groww, tap “SIP Details”, and select “Cancel SIP”. This stops future instalments but leaves your existing investment untouched. Your money stays invested and continues to grow.
How long does an ELSS fund take to redeem?
ELSS (Equity Linked Savings Scheme) funds have a mandatory 3-year lock-in. Units invested on a specific date cannot be redeemed until exactly 3 years from that date. If you’ve been running a ₹5,000/month SIP, each instalment has its own 3-year lock-in — you can’t redeem them all at once until the oldest units complete three years.
Will Groww deduct TDS when I redeem?
For resident Indians, mutual funds do not deduct TDS on redemption. You’re responsible for declaring the capital gains when you file your ITR. Groww provides a capital gains statement (downloadable from the app) that shows all the numbers you need for filing.