Sunday, December 26, 2010

Redeem

The term redeem refers to an investor cashing in their mutual fund shares (by selling them back to the fund). For most funds the procedures are that the investor may redeem their shared on any business day, and that the price will be (quoted by the fund provider) the net asset value (NAV) less any deferred sales charges or redemption or early withdrawal fees. Each specific managed fund product may differ on their specific procedures and fees for redemption so it is prudent to find out what these are before investing.

Synonyms: Withdraw, Cash in holdings, Redemption

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