@megusta Any idea if this will impact Zeordha Coin? Since they are operating in Demat mode, will the funds have a settlement cycle of T+2 (and you'll get the NAV date of 2 days later), or will it operate like equity trades where even though the settlement happens later, the price is locked at the time of the trade (since payment is guaranteed to the AMC)
@megusta I was just reading that email and came to Reddit to see what’s happening. This certainly is going to be a bad thing IMO. Just because of uncertainty of what the market is going to be in +1 or +2 days.
@megusta I do not understand what is the problem here? This used to happen before as well for transactions >2 lacs. Now sebi has just standardised it such that it happens for all amounts.
Also, earlier there was a loop hole that allowed people to time the markets . If the market went up instead of going down on your sip date, just fail the mandate else pay. Now this is no longer possible.
If you read the blog by niyo money, this is given in a more detailed manner than the email itself.
@believetheword It's not a loophole. We can "time the market" by buying stocks and etfs whenever we like during market hours. Couldnt do that with mutual funds anyway and now it's worse.
@megusta "Experts believe that this would not be a problem in case of net banking but there could be some lag in case of cheque payment. The change will create a level playing field for investors across mutual fund schemes and experts say it is also likely to increase the use of digital payments."
So, no problem in case of net banking. This applies for cheque payment.
The NIYO mail seems to suggest different from what I read everywhere else.
@mrdean36 Will it though? Honestly with digital payments this much lead time is unacceptable. They should at least be able to say if it would be T+2. It can't be all in the wind.
@megusta Hopefully, the expense ratio should go down.
One of the reasons that MFs were increasing their expense ratio was because they had to take loans for large orders and the existing unit-holders (which I don't understand why) had to bear the brunt.
I still believe that tier-wise expense ratio would have been a better approach. If you are investing 1 Cr, your expense ratio would be 0.5% and if you are investing via SIP of 1000, your expense ratio would be 0.01%.
