Redemption is the process through which an investor receives back the principal amount (in case of fixed-income securities) or sells the units in case of a mutual fund. Different firms have different exit policies. Some may even have a lock-in period during which redemption is not permitted.

In case of redemption of mutual fund units, one can do it directly through the fund house, via a DEMAT account, with the help of a distributor or agent or through a R&T Agent. The reasons for redemption varies for individuals. It can be done if the fund is not performing as per expectations, unforeseen financial crisis or when the markets have reached new highs.