You can take money out of a fund any time on DragonFi, with no fixed lock-in. Here's how redeeming works and how long it takes for the money to reach you.
Redeeming, also called selling, means converting some or all of your units back into cash. In general, the steps are:
- Open the fund you want to redeem from in the DragonFi app.
- Tap to redeem, then enter the amount or number of units you want to sell.
- Review the details and confirm.
You can usually redeem part of your investment and leave the rest invested, or redeem all of it.
Is there a lock-in period?
For regular funds, there is usually no fixed lock-in except for the BPI ALFM Global Multi-Asset Fund, so you can redeem whenever you like. The main exception is a PERA account, which has its own retirement withdrawal rules, where taking money out early may mean giving up some of the tax benefits and penalties. See DragonFi's PERA articles for those details.
When does my redemption price get set?
Like investing, redeeming follows the fund's daily cut-off time. Redeem before the cut-off on a business day and your order uses that day's NAVPU; redeem after the cut-off, or on a weekend or holiday, and it uses the next business day's NAVPU. You won't know the exact price the instant you place the order, which is normal for funds.
How long until I get my money?
After your redemption is processed, it takes a few business days for the cash to be credited, a period called the settlement time. This depends on the type of fund:
- Local funds (money market, bond, Philippine equity, and similar) settle in a few banking days.
- Feeder and global funds take a little longer, typically around five to six banking days, because the money comes from an overseas fund.
Settlement times fall on banking days, so weekends and holidays are not counted.
Good to know
There's no penalty usually for redeeming from a regular fund. That said, for long-term funds like equity and global funds, redeeming during a temporary dip locks in that loss, so it's worth considering your time horizon before selling. You can always redeem just part of your holding if you only need some of the cash.