How do I sell my units and get cash back?

Selling units = “redemption”. It’s 100% online now and takes 1-4 working days to get cash.

No broker needed. No haggling. Here’s the exact process:

1. How to sell – step by step

Most companies like NDB Wealth, CAL, First Capital use similar apps/portals.

1. Log in to your unit trust app or website
2. Go to Redeem/Sell section 
3. Select the fund you want to sell from
4. Choose amount: Either number of units OR LKR amount. Ex: “Sell 5,000 LKR worth”
5. Pick bank account: Must be in your name. Already saved when you opened the account
6. Confirm OTP sent to your phone
7. Done. You get instant confirmation email

Paper form option: Still exists. Download form, fill, email/scan. But online is 10x faster.

2. When do you get the money?

Cut-off time	NAV price used	Cash in bank
Before 2:30 PM on working days	Today’s closing NAV	T+3 working days
After 2:30 PM	Next working day’s NAV	T+4 working days

T+3 means: Sell Monday before 2:30 PM → cash by Thursday.  

Weekends/holidays: Don’t count. Sell Friday 4 PM → cash next Wednesday.

Money Market Funds: Some pay T+1. Ex: NDB Money Plus often credits next day.

3. Fees and taxes when selling

1. Exit fee: 0% if you held >90 days. Most people pay 0%.    Sell before 90 days = 0.5% to 1% fee. Ex: Sell 10k early = 50-100 LKR fee.
2. WHT tax: 10% on profit only. Taken automatically.     Ex: Bought 10k, sell for 12k → 2k profit → 200 LKR tax → you get 11,800 LKR.
3. Capital gains tax: 0% for individuals in LK right now. So no extra tax.

4. Partial vs full sale

You can sell any amount. No need to sell everything.

Ex: You have 50k in fund. Need 15k emergency cash. Just redeem 15k. Rest keeps growing.

Minimum redeem: Usually 1,000 LKR or 100 units. Check your fund.

5. 3 Gotchas to avoid

1. Selling during market crash: NAV is low, you lock in loss. If you can wait 1-2 years, don’t sell Equity funds in a dip.
2. Wrong bank account: Must be same name as CDS account. Joint account? Both names must match. Takes 2 weeks to change bank details.
3. After 2:30 PM Friday: NAV = Monday’s price. If market crashes Monday, you get Monday’s lower price. Not Friday’s.

6. What happens behind the scenes

You hit “Sell” → Fund manager sells stocks/bonds worth your units → Keeps cash ready → Transfers to your bank on T+3.  

You’re not waiting for a buyer. The fund itself buys your units back.