ICICI Direct has introduced a new facility, e-ATM for Mutual Funds, using which investors can get an instant payout on their mutual fund redemption orders. So, this means that if a mutual fund investor needs funds in an emergency, then he or she can get instant money in their bank accounts by redeeming their mutual funds.
Previously, customers had to wait for two to four working days to receive their funds against their mutual fund redemptions. ICICI Direct said that its customers can get a payout within 30 min of redemption with e-ATM for MFs.
However, clients would only get a 50-70% of their MF redemption value within 30 minutes on MF redemptions. The remaining balance will be paid as per the payout cycle of the fund, which can be 2-4 working days.
As of now, ICICI Direct has capped the maximum redemption at Rs 10 lakh per customer right now. If the client redeems the amount after 7:30 pm, then she/he will get the redemption at 10 am the next working day, ICICI Direct said.
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. We are happy to introduce ICICIdirect e-ATM for MFs which is available even post-market and normal banking hours, and hence will be of great use in meeting urgent and last-minute liquidity requirements. 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. This is a very strong value proposition we offer.”
ICICI Direct said in a statement, e-ATM for MFs can be availed by resident individuals holding their equity, debt, and liquid schemes in Demat units. “It is also available for domestic schemes with international exposure. The facility comes at a nominal cost,” the company added.
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