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Mutual Fund Redemption

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Key factors to know before investing in closed-ended mutual funds

Before investing in mutual funds with a closed-ended orientation, investors must consider the following factors:

  • Lock-in period: Understand the fund's maturity period and your ability to remain invested for that duration.​ Choose funds that have maturity periods that align with your investment horizon and goals.
  • Market risks: Recognize that investments are subject to market fluctuations affecting NAV and trading prices.​
  • Tax implications: Be aware of the tax treatment on capital gains from these funds.​

How to invest in closed-ended funds?

Many Indian investors invest in mutual funds to build wealth while ensuring a balanced and strategic approach to financial planning. However, just as selecting the right fund is essential, knowing when and how to exit plays a crucial role in improve returns. Understanding what is mutual fund redemption helps investors make informed decisions, whether for meeting financial goals, rebalancing portfolios, or optimizing tax efficiency. Factors such as exit loads, tax implications, and market conditions influence redemption outcomes, making it important to plan withdrawals strategically. Aligning redemption decisions with stock market basics ensures investors manage their portfolios effectively while maintaining long-term financial stability.

What is mutual fund redemption?

Mutual fund redemption refers to the process of selling your mutual fund units back to the fund house to liquidate your investment, either partially or completely. When you redeem mutual fund units, you receive the current market value of those units, known as the Net Asset Value (NAV), minus any applicable exit loads or taxes. The process of mutual fund redemption essentially involves converting your investment back into cash that gets credited to your registered bank account.

Unlike stocks that can be sold on exchanges, mutual fund units are redeemed directly through the Asset Management Company (AMC) that manages the fund or through intermediaries like distributors, advisors, or online platforms. The mutual fund redemption process allows investors to access their money when they need it, which is a crucial aspect of financial planning and investment management.

How does mutual fund redemption work?

The mutual fund redemption mechanism is designed to be straightforward, though it involves several steps and considerations:

  1. Initiating redemption: Investors can initiate redemption through various channels, including the AMC's official website, mobile applications, or through intermediaries like brokers and financial advisors.
  2. Processing time: The time taken to process a redemption request varies based on the type of mutual fund:
  • Equity Funds: Typically processed within 3–4 working days.
  • Debt Funds: Usually processed within 1–2 working days.
  • Liquid Funds: Often processed within one working day.
  1. Exit Loads: Some mutual funds impose an exit load, a fee charged when units are redeemed before a specified period. This fee is typically a percentage of the redemption amount and serves as a deterrent against premature withdrawals.
  2. Tax Implications: Redemptions may attract capital gains tax, depending on the type of fund and the holding period. It's crucial to understand these tax implications to manage post-tax returns effectively.

Types of mutual fund redemption

Understanding the different types of mutual fund redemption options can help investors make informed decisions based on their financial needs:

  1. Unit-based redemption: Investors specify the number of units they wish to redeem. The redemption amount is calculated by multiplying the number of units by the prevailing NAV.
  2. Amount-based redemption: Investors specify the amount they wish to redeem. The number of units to be redeemed is determined by dividing the specified amount by the current NAV.
  3. Full redemption: Investors opt to redeem their entire investment in a particular mutual fund scheme, effectively exiting the fund.

The type of mutual fund redemption you choose should align with your financial goals, immediate cash needs, and tax planning strategy.

Mutual fund redemption process

The mutual fund redemption process typically follows these steps:

  1. Initiate redemption request: This can be done through various channels:
  • Online through the AMC website or app
  • By visiting the AMC office or your distributor
  • Through phone banking (if applicable)
  1. Provide redemption details: Specify whether you want a complete or partial redemption. For partial redemption, indicate either the number of units, amount, or percentage.
  2. Verification: Complete the authentication process, which may involve an OTP, signature verification, or other security measures.
  3. Confirmation: Once processed, you'll receive a confirmation of your redemption request.
  4. Payout: The redemption proceeds are transferred to your registered bank account within the stipulated time frame.
  5. Tax implications: Keep track of redemptions for tax filing purposes, especially for equity funds which might attract long-term or short-term capital gains tax.

The mutual fund redemption process varies slightly between AMCs and platforms, but the general flow remains consistent. You should also note that unlike investing in bonds or fixed deposits, mutual fund redemptions are subject to market-linked valuations.

Reasons for redeeming mutual funds

Investors may choose mutual fund redemption for various reasons:

  1. Goal achievement: When you've reached your financial target, such as saving for education, marriage, or home purchase you may want to redeem your mutual fund investment.
  2. Rebalancing portfolio: You may want to redeem your investments to maintain your desired asset allocation balance between equity, debt, and other instruments, including ETF investments.
  3. Better investment opportunities: Sometimes investors redeem their units to shift funds to other investment options that may offer better potential returns or align better with their current financial goals.
  4. Emergency fund requirements: Mutual fund redemption may be necessary to help you gain access to liquid cash to meet unexpected financial needs or emergencies.
  5. Poor fund performance: If a fund consistently underperforms its benchmark or peer group, investors may consider redeeming their investments in it.
  6. Change in financial goals: As life circumstances change, your investment strategy may need adjustment, necessitating redemption of certain funds.
  7. Tax planning: Investors may also redeem their investments to realize gains or losses strategically for tax efficiency.

When should you redeem?

Timing your mutual fund redemption can significantly impact your returns and tax liability:

  • Goal completion: Redeem when you have reached your financial goal or are approaching the time when you will need the funds.
  • Rebalancing requirement: Consider redemption when your portfolio allocation has significantly deviated from your planned asset allocation.
  • Fund underperformance: If a fund consistently underperforms its benchmark for 4–6 quarters, it might be time to reconsider your investment.
  • Change in fund attributes: You can consider redeeming your investment if there's a change in fund management, investment strategy, or expense ratio that does not align with your investment philosophy.
  • Better alternatives: When you identify better investment opportunities, including other mutual funds or alternative investments.
  • Financial emergency: In case of urgent financial needs, though it is always advisable to maintain a separate emergency fund rather than relying on mutual fund investments.

Difference between selling mutual funds and stocks

Understanding how mutual fund redemption differs from stock selling can help investors navigate both markets effectively:

Feature

Mutual Funds

Stocks

Selling Process

Investors place a redemption request through the mutual fund house, broker, or investment platform.

Stocks can be sold instantly during market hours through a stock exchange.

Time Taken to Sell

Redemptions are processed within 1-4 business days, depending on the type of mutual fund.

Stocks are sold in real-time as long as the market is open, with settlement typically occurring in T+1 (T+0 for some) days.

Liquidity

Redemption processing time affects liquidity, making it less immediate than stocks.

Stocks provide immediate liquidity as they can be sold anytime during market hours.

Pricing

Priced at the Net Asset Value (NAV), which is determined at the end of the trading day.

Prices fluctuate throughout the trading session based on real-time supply and demand.

Exit Loads and Charges

Some funds impose exit loads if redeemed before a specified period. Other charges may apply depending on the fund house.

No exit loads, but brokerage fees and securities transaction tax (STT) apply on sales.

Tax Implications

Capital gains tax applies based on the type of mutual fund and holding period.

Short-term and long-term capital gains tax applies based on stock trading duration.

Exit loads associated with mutual fund redemption

Exit load is a fee charged when an investor redeems mutual fund units before a specified period. This is designed to discourage short-term investments and premature withdrawals. Understanding exit loads is crucial in the mutual fund redemption process.

Typically, equity funds have exit loads ranging from 1-2% if redeemed within one year of purchase. Debt funds may have shorter exit load periods, usually 3-6 months. Liquid funds generally don't have exit loads, making them similar to bank deposits in terms of liquidity.

The exit load amount is calculated as a percentage of the NAV on the date of redemption. For example, if you redeem units worth ₹1,00,000 with a 1% exit load, you would receive ₹99,000 (₹1,00,000 minus ₹1,000 exit load).

AMCs disclose their exit load structures in their scheme information documents and factsheets. Before initiating mutual fund redemption, check the applicable exit load to avoid unexpected deductions.

Charges to redeem mutual fund units

Besides exit loads, investors should be aware of other potential charges associated with mutual fund redemption:

  1. Exit Load: This is a fee charged by the Asset Management Company (AMC) when an investor redeems mutual fund units before a specified period, typically within 1 year. Exit loads usually range between 0.5% to 2% of the Net Asset Value (NAV), depending on the fund type.
  2. Capital Gains Tax: Capital gains tax is levied on the gains accrued from mutual fund investments. This tax is calculated on the basis of the type of fund and holding period:
  • Short-Term Capital Gains (STCG): Any gains made by the sales of equity mutual fund units (held for less than twelve months) are taxed at 20%. Gains from debt fund units are taxed as per the investor's income tax slab.
  • Long-Term Capital Gains (LTCG): Any gains over ₹1.25 Lakhs from equity fund units (held for more than twelve months) are taxed at 12.5%. For debt mutual fund units (acquired on or after April 1st, 2023), all capital gains are treated as short-term and taxed as per the investor's applicable income tax slab rates, irrespective of period of holding.
  1. Securities Transaction Tax (STT): STT is applicable only on the redemption of equity-oriented mutual funds. The current STT rate is 0.001% of the total redemption value.
  2. Transaction Charges: Some fund houses and platforms impose a transaction charge when investors redeem mutual fund units.

How to redeem mutual funds?

The process of mutual fund redemption varies slightly depending on the channel you choose:

  1. Through AMC website/app:
  • Log in to your account
  • Select the fund you wish to redeem
  • Choose complete or partial redemption
  • Specify redemption details (units/amount/percentage)
  • Confirm the transaction using OTP or other authentication
  • Receive confirmation and track status
  1. Through investment platforms:
  • Log in to the investment platforms
  • Navigate to your portfolio or investments section
  • Select the fund and click on "Redeem"
  • Enter redemption details
  • Complete verification
  • Track the redemption status
  1. Physical redemption:
  • Fill out the redemption form (available at AMC offices or can be downloaded)
  • Provide your folio number, scheme details, and redemption amount
  • Submit the form at the AMC office or to your distributor
  • Retain the acknowledgment slip
  1. Through CAMS/Karvy:
  • Visit the registrar and transfer agent's office
  • Submit the redemption form
  • Complete verification process
  • Collect acknowledgment

Methods to exit from mutual funds

Investors have various strategies to exit their mutual fund investments:

  • Lump-sum redemption: Investors can redeem all or a significant portion of their mutual fund units at once, receiving the entire withdrawal amount in their bank account. This method is useful when a large sum is needed for major expenses like home purchases, medical emergencies, or planned financial goals. However, market timing, exit loads, and capital gains tax should be considered before opting for a lump sum redemption.
  • Systematic Withdrawal Plan (SWP): An SWP allows investors to withdraw a fixed amount at regular intervals, such as monthly or quarterly. This strategy is popular among retirees looking for a steady income while keeping the remaining investment growing. Unlike lump sum redemptions, SWPs offer better control over withdrawals and tax efficiency, as only the withdrawn portion is subject to taxation.
  • Partial redemption: Investors can redeem a portion of their mutual fund units while keeping the rest invested. This approach provides liquidity without exiting the fund entirely, allowing the remaining investment to continue generating potential returns. Partial redemptions help in managing short-term cash needs while maintaining long-term financial goals.
  • Systematic Transfer Plan (STP): Instead of withdrawing funds, investors can transfer investments from one mutual fund scheme to another within the same fund house. STPs are often used to shift funds from equity to debt or vice versa based on market conditions and risk appetite. While beneficial for portfolio rebalancing, tax implications and exit loads should be checked before making a switch.

Key considerations before redeeming mutual funds

Before proceeding with mutual fund redemption, investors should evaluate:

  • Exit load applicability: Check if your investment is still within the exit load period to avoid unnecessary charges.
  • Tax implications: Understand the capital gains tax liability that will arise from redemption.
  • Market timing: While timing the market perfectly is difficult, avoid redeeming during extreme market downturns if possible.
  • Financial goals: Assess whether your financial goal has been achieved or if redeeming would derail your long-term plans. If you are making SIP investments, consider using an SIP calculator tool to better plan your investments.
  • Reinvestment plan: Have clarity on where the redeemed amount will be utilized or reinvested.
  • Partial vs. complete: Decide whether to redeem your entire investment or only a portion based on your needs.
  • SWP alternative: Consider if setting up an SWP would be more beneficial than a one-time redemption.

Risks associated with mutual fund redemption

Mutual fund redemption carries certain risks that investors should be aware of:

  • Market risk: If markets drop significantly, redeeming during downturns can lead to capital loss.
  • Opportunity cost: Exiting a fund that later performs well means missing out on potential gains.
  • Reinvestment risk: The challenge of finding equally good investment opportunities for the redeemed funds.
  • Tax burden: Redemptions can trigger taxable events, potentially pushing you into a higher tax bracket.
  • Exit load impact: Premature redemptions subject to exit loads reduce your effective returns.
  • Liquidity delays: In rare cases, fund houses may delay redemptions during extreme market conditions.
  • Administrative errors: Issues like incorrect bank details can delay your redemption proceeds.

How to avoid tax on mutual fund redemption?

Minimizing tax liability on mutual fund redemption requires careful planning and strategic execution. Investors can optimize post-tax returns by aligning redemptions with favorable tax provisions and utilizing exemptions. Since mutual funds are subject to capital gains tax, it’s essential to adopt tax-efficient mutual fund redemption strategies to legally reduce tax outflows. Below are some effective methods to avoid or minimize taxes on mutual fund redemption:

  • Hold for a longer term: Equity-oriented mutual funds held for more than one year qualify for long-term capital gains (LTCG) taxation, which is lower than short-term tax rates. While LTCG from equity funds are taxed at 12.5%, short-term capital gains tax on the same funds stands at 20%. Therefore, holding investments for a longer duration ensures better tax efficiency while benefiting from compounding growth.
  • Tax harvesting: Investors can strategically offset capital gains with capital losses to reduce taxable income. By redeeming underperforming investments and booking capital losses, these losses can be adjusted against capital gains, thereby lowering the net tax liability. This method, known as tax-loss harvesting, is particularly useful in volatile markets where some investments may be in loss while others are in profit.
  • Utilize LTCG exemption: Investors can enjoy tax exemption on LTCG amounting up to ₹1.25 Lakhs per financial year when the gains are made from the sale of equity funds held for more than a year. While gains beyond this threshold are taxed at 12.5%. If investors have accumulated significant gains, they can plan redemptions strategically to stay within this exemption limit. Instead of redeeming in one go, investors can spread withdrawals over multiple financial years to make full use of the annual exemption and avoid excess taxation.
  • Staggered redemption: Instead of redeeming mutual fund units in one lump sum, investors can spread withdrawals across multiple financial years. This approach helps optimize tax liability by ensuring that annual LTCG exemptions are utilized effectively. Additionally, spreading redemptions can help avoid higher tax slabs by managing taxable income levels.

Things to remember while redeeming mutual funds

To ensure a smooth mutual fund redemption experience, keep these points in mind:

  • Verify bank details: Ensure your bank account information is up-to-date with the fund house to avoid payment delays.
  • Check NAV applicability: Understand which day's NAV will apply to your redemption based on submission timing.
  • Maintain documents: Keep redemption confirmations and account statements for tax filing purposes.
  • Monitor exit load period: Track your investment tenure to avoid exit load charges where possible.
  • Consider tax implications: Plan redemptions with an understanding of the tax consequences.
  • Verify KYC status: Ensure your KYC is current and complete to avoid redemption processing delays.
  • Update contact information: Keep your mobile number and email address updated for transaction notifications.

Conclusion

Mutual fund redemption is a critical aspect of the investment lifecycle that requires careful planning and consideration. Understanding what is mutual fund redemption and its implications helps investors make informed decisions about when and how to exit their investments.

The mutual fund redemption process has been simplified over the years, especially with digital platforms, but investors must still be mindful of factors like exit loads, tax implications, and market timing. Whether you're redeeming to meet financial goals, rebalance your portfolio, or respond to changing market conditions, a strategic approach to redemption can help preserve and maximize your investment returns.

Just as tools like SIP Calculator and Lumpsum Calculator help in planning investments, understanding redemption mechanisms helps in planning exits. Whether your investment strategy includes mutual funds, ETFs, investing in bonds, or the NPS scheme, knowing how and when to exit is as important as knowing when to enter. By approaching mutual fund redemption with the same diligence as you would approach investment selection, you can ensure that your mutual fund journey concludes as successfully as it began, helping you achieve your financial goals effectively.

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Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.