Final answer:
When a client redeems shares in a mutual fund, the fund company must send the payment within a specified period of time, typically within 7 days.
Step-by-step explanation:
When a client redeems shares in a mutual fund, the fund company must send the payment within a specified period of time, typically within 7 days. This time frame is known as the redemption settlement period.
For example, if a client submits a redemption request on Monday, the fund company must send the payment to the client by the following Monday.
It's important to note that the exact redemption settlement period may vary depending on the mutual fund and the terms outlined in its prospectus.