Redemption
 |
Definition of 'Redemption'The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units in a mutual fund. A redemption occurs, in a fixed income security at par or at a premium price, upon maturity or cancellation by the issuer. Redemptions occur with mutual funds, at the choice of the investor, however limitations by the issuer may exist, such as minimum holding periods. |
 |
Investopedia explains 'Redemption'Redemption of mutual fund shares from a mutual fund company must occur within seven days of receiving a request for redemption from the investor. Some mutual funds, may have redemption fees attached, in the place of a back-end load. It is important to note which units should be redeemed when choosing to sell mutual funds within a portfolio. |
Related Definitions
Articles Of Interest
-
The Benefits Of ETF Investing
Exchange-traded funds provide unique opportunities for investors. Find out how. -
January: Time To Read Your Mutual Fund's Annual Report
Don't let this valuable piece of mail end up in your trash can. Here are five things you need to know. -
Bond Call Features: Don't Get Caught Off Guard
Learn why early redemption occurs and how to avoid potential losses. -
What's the difference between a load and no-load mutual fund?
A mutual fund is simply a large group of people who lump their money together for a management company to invest. And, like most things in life, there are fees and commissions involved. Mutual ... -
Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?
Yes. You can freely buy and sell shares of a mutual fund regardless of any requirement for a minimal initial purchase amount or the application of a redemption fee. In this sense, the investment ... -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks. -
4 Behavioral Biases And How To Avoid Them
Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio. -
Mutual Fund Ratings: Crucial or Insignificant?
Mutual fund ratings can help investors, but they have their drawbacks as well. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own.
Free Annual Reports
