What is fund redemption?

Redemption means a fund investor getting back all or part of their investment stake at the fund's net asset value.

When an investor submits a redemption request to the distributor, the distributor passes it on to the asset manager; in principle, the proceeds are paid out of the cash held by the fund, and the units concerned are then cancelled. If all investors agree, payment may be made in assets held by the fund instead of cash.