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Glossary

Redemption

Redemption is an investor's request to have fund units bought back by the fund at the net asset value, subject to the fund's rules on dates, notice periods and limits.

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Short answerRedemption is an investor's request to have fund units bought back by the fund at the net asset value, subject to the fund's rules on dates, notice periods and limits.

Redemption is the process in which an investor asks a fund to buy back their units and pay out the value in cash.

How it works

The fund rules state when redemption is possible, how much notice is needed and how the price is set, usually from the net asset value on a given date. The proceeds come from the fund's cash or from asset sales.

Why it matters

In funds that hold real assets, redemption is often restricted. The fund may set fixed dates, holding periods and limits, and may defer requests if too many arrive together. You may therefore wait, receive only part of the amount requested, or be unable to redeem for a time. Read the redemption rules before investing.

General information. Not investment advice or a suitability assessment.

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