NAV will no longer be the the date of purchase for mutual funds?

[lukechester]

@lakecrescent The AMC (asset management company) here is Axis. In an ideal world, you would purchase directly from Axis and not a broker/ platform.

However, a typical semi-active investor, even while investing in MFs, would be doing business with 3-5 funds, and potentially 2-3 AMCs. Hence, the preference for brokers and platforms.

 

[lakecrescent]

@lukechester Thanks, will check if buying from axis directly has any benifit as I am planning to keep investing for next 25 years

 

[resjudicata]

@cloejb Heck, MFs should start accepting UPI, instant real time settlement.

I understand it's only upto 1L but it's better than to have nothing.

 

[vigilant4christ379]

@resjudicata Would using UPI via distributors such as Paytm Money solve this?

 

[pearlin]

@megusta From goodreturns.in website:
Experts believe that the change in rules was brought-in as investors used to put multiple cheques of Rs 1.99 lakh for one application in a rising market to take advantage of the loophole and then dishonour the cheque in a falling market, hurting existing investors in the scheme.

https://www.goodreturns.in/personal...utual-fund-rules-from-1-jan-2021-1163560.html

 

[kenjisan70]

@pearlin why not punish those people by lowering their credit scores or something? Punishing the rest doesn't seem like a good solution

 

[cjs17]

@pearlin Even if cheque clearance takes 7 days, they'll be earning like 150 rs only

 

[zbnigniew]

@megusta I think PPFAS has options for same day NAV if you use their selfinvest portal and transfer through HDFC / ICICI net banking option or do NEFT/RTGS to specified bank accounts. This has worked out well in the past. Not sure if that will change now.

 

[megusta]

@zbnigniew Can someone confirm this?

 

[zbnigniew]

@megusta https://amc.ppfas.com/schemes/parag-parikh-long-term-equity-fund/transaction-timelines/

This link has the information

 

[man_in_pain]

@megusta Although this makes sense from the AMC perspective, it looks like a workaround to a problem rather than a fix. It would've been better if they could enforce a means of instant payments. I don't know how easy that is or if it is even feasible, but at the end of the day it is a transfer from an account to account and we have IMPS and RTGS.

 

[pushkin]

@megusta Waiting for an update from Zerodha regarding this.

 

[gr8grace]

@megusta Just because it happened for liquid funds and 2L+ trnasactions, doesn't make it right.

Instead of making the process faster, the push is on consumer bearing 2-3 day loss of interest on money. This in fact reduces motivation to improve the payment process.

 

[cn17]

@megusta What is this shitty rule. The mutual fund industry has had some very shit rules, one was cut off times at 12 and now this. If the amount is getting debited by my bank on Monday why the fuck should I get units on Wednesday due to incapability and incompetence of both the regulatory authorities and payment gateways. Pathetic.

 

[gr8grace]

@cn17 Going by this thread, we seem to be in minority for feeling like this.

I've had liquid fund investments on hold for 3-4 working days just waiting for NAV allocation. If this starts happening in other funds, monthly SIPs would be, well, a headache to track every month

 

[rosebuds1111]

@cn17 ETF are better in this regard but has liquidity issues for large capital.

 

[resjudicata]

@cn17 This is a awesome rule. The payment aggregator is allowed to hold funds for a day to cover costs. Other investors were paying bearing these charges for you just because you wanted convenience.

For eg zerodha has zero costs for imps/upi/neft replenishment of wallets . However if you use web banking they charge. This is to cover the bank charges to zerodha for usage of their gateway.

Use the AMC web site to get same day nav

 

[cn17]

@resjudicata For who? Makes no sense. If 100 rupees is debited on Monday why would I want units on Wednesday. Bullshit rule.

 

[resjudicata]

@cn17 The mf will receive the money on Tuesday/ Wednesday and invest it. Your returns will start on the day the mf invests. Until now, the existing investors were involuntarily sharing their returns with you. This robbery stops.

No one is for forcing you to invest. Invest thru the mf website or MFU to get same day nav.

 

[kandi117]

@resjudicata To be honest, this is plain stupid. I agree with you completely that other investors shouldn't have to pay for one's investments, but the solution should have been to speed up payments.

Not being able to do instant payments in 2020 between a business and an individual is a collective failure of regulatory authority and banking systems. This is like going back to the era of cheque where one would deposit a document with the bank and wait for days to know the status.