Why Does Mutual Fund Redemption Take Up to 7 Business Days?
Mutual fund redemption takes time on Pluang, up to a maximum of 7 business days, because the money in a mutual fund is not held as cash that can be withdrawn instantly, so your sale proceeds cannot be received immediately. It has been invested in assets such as stocks, bonds or deposits, which the investment manager has bought and manages. When you sell, the investment manager has to sell those assets and recap the fund's total sales for the day, and the custodian bank then records the sale proceeds. Only after this recap is complete can the proceeds be transferred to you, so the process cannot be finished in one day. Under OJK regulation 23/POJK.04/2016 Article 24, the maximum time for disbursing sale proceeds is 7 business days from when the investment manager receives your sell order. Business days exclude Saturdays, Sundays, national holidays and Cuti Bersama set by the government. The proceeds go to your registered mutual fund bank account.
Why a mutual fund sale takes time
- You submit a sell order in the Pluang app. A sale before 13:00 WIB on an exchange day gets that day's NAV (NAB); a later sale gets the next exchange day's NAV.
- The investment manager sells the stocks, bonds or deposits that were bought with the fund's money.
- The investment manager recaps how much of the mutual fund was sold that day.
- The custodian bank records the sale proceeds.
- Once the whole recap is complete, the proceeds are transferred to your registered mutual fund bank account.
Timing at a glance
- Verification by the investment manager: on the next business day for sales before 13:00 WIB; 2 exchange days for sales at or after 13:00 WIB or on non-exchange days.
- Transfer to your bank account: a maximum of 7 business days.
- Legal basis: POJK 23/POJK.04/2016 on Mutual Funds in the Form of Collective Investment Contracts, Article 24.
- Step-by-step guide for selling: "Cara Menjual Reksa Dana".
Related questions:
Q: Why does mutual fund redemption take so long instead of being paid the same day?
Because your mutual fund money is invested in the fund's assets, not kept as cash. The investment manager has to sell those assets and recap the day's sales, and the custodian bank has to record the result before any proceeds can be paid out. These steps involve several parties and cannot be completed in one day, which is why OJK sets a maximum disbursement period of 7 business days rather than same-day payment.
Q: Can I redeem my mutual fund at any time?
Yes. You can place a mutual fund sale in the Pluang app at any time, including on weekends, with a minimum of Rp100,000 per sale. However, sales are processed only on exchange days: a sale before 13:00 WIB on an exchange day gets that day's NAV, while a sale at or after 13:00 WIB, or on a weekend or holiday, gets the next exchange day's NAV. The proceeds then arrive within a maximum of 7 business days.
Q: What counts as a business day for mutual fund disbursement?
Business days are Monday to Friday, excluding Saturdays, Sundays, national holidays and Cuti Bersama days set by the government. For example, if you sell on a Friday, the following Saturday and Sunday are not counted toward the 7-business-day maximum. A national holiday or Cuti Bersama day during the week is not counted either, so the calendar time until your proceeds arrive can be longer than 7 days.
Q: Where will my mutual fund sale proceeds be sent?
They are sent only to the bank account you registered as your mutual fund bank in the Pluang app, or, if you have not chosen one, automatically to your main mutual fund bank account shown in the app. The account must be in your own name. If that bank is different from the bank that holds the mutual fund, your bank deducts an estimated transfer fee of Rp2,500 to Rp30,000 per transaction.
Q: What should I do if my proceeds have not arrived after 7 business days?
First, count only business days from when your sell order was received by the investment manager, leaving out weekends, national holidays and Cuti Bersama, and check that your registered mutual fund bank account is correct. If the maximum period has passed, contact Pluang Care through in-app live chat, by email at tanya@pluang.com, or by phone at (021) 8063 0065, Monday to Friday, 09:00–18:00 WIB.