Investment Methods

Redemption

Definition

What is Redemption?

The process of selling fund units back to the fund in exchange for cash.

Example in practice

An investor redeems 20,000 units at a bid price of $1.40 and receives $28,000 before any charge or tax.

Keep learning

A single, relatively large investment made at one time instead of through repeated contributions.

Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.

An arrangement for making scheduled recurring contributions into an investment fund.

The complete investment result from price changes plus income, assuming distributions are included.

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