Skip to main content

How to Rectify Mutual Fund Mistakes



Use the following guidelines to take remedial action and avoid errors in the future

 

Mumbai-based Investor had made a partial redemption request for 2,000 units in an open-ended equity fund. However, when he received the account statement, he realised that the AMC had redeemed only 400 units, worth `2,000, not the 2,000 units worth `1 lakh he had asked for. Meanwhile, the market crashed, eroding the NAV of the scheme he had invested in. He lodged a complaint with his distributor, who, in turn, brought it to the notice of the AMC. After a few days of heartburn and exchanging mails, the AMC corrected its mistake and redeemed the differential units at a historical NAV. A year ago, her switch request, from an ultra-short-term debt fund to an equity fund, was ignored. The Sensex was at around 18,000 at the time, but now that it is at a new high, she missed out on the big opportunity due to the switch request failure. However, the AMC refused to accept her claim and did not issue the units of the equity scheme based on the historical NAV .

Though the systems and processes have improved over the years, mistakes such as these keep occurring even today , be it at the level of the investor, distributor, AMC, registrar or the bank. Most of these problems occur because of the separation between the AMC and registrar, forcing investors to sort it out between the two. Sometimes the resolution becomes complicated due to the separation between the AMC and the registrar.

The problem can also be with the banking system, that is, if the bank does not transfer the money on time. Mutual funds can't issue units until the money is credited to their accounts if the investment amount is `2 lakh or more. Since there is little one can do to avoid mistakes made by others, we will concentrate on the possible remedial measures that can help you regain lost ground. However, note that if the mistake is at your end, you will have to take a hit.

The first step is to closely monitor all statements issued by the AMC and ensure that everything is in order. You need to be extra careful if you had made new requests regarding purchase, redemption or switch of funds. Act immediately if you see any discrepancies.

 

DOCUMENTS

Investors also need to make sure that the documentation is in order at their end to fight the agencies effectively. Keep a photocopy of the filled-form. Also, ask for a proof of acknowledgment. When you lodge a written complaint, attach copies of all relevant documents as proof. If you lodge a complaint over the phone, ask the complaint ID and note it down.

DON'T SIGN BLANK FORMS

While mistakes do happen at the level of distributors, that is, mutual fund agents or bank staff distributing mutual funds, the investor is also to be blamed if he or she signs a blank or incomplete form and hands it over to them. The buyer beware rule is applicable here.

APPROACH SEBI

If you are thorough with your documentation and act immediately, chances are that the issue will be settled at the AMC level. If this doesn't happen, approach Sebi, the regulator for mutual funds and the stock market. You can register an online complaint on the Sebi complaint redressal system, http: http:www.scores.gov .in. You will get an e-mail immediately , acknowledging the receipt of your complaint.

BANKING OMBUDSMAN

If the problem is due to the bank not transferring the money on time, you can take it up with the banking ombudsman. Here again, you can either approach the office of the ombudsman or lodge a complaint online at https:secweb.rbi.org.in BOprecompltindex.htm.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

How Tax Deducted at Source (TDS) works?

    THE tax season is here. And if you are an employee you can't blame your employer for deducting large chunks of money from your salary towards tax deducted at source ( TDS ), which he is legally obliged to do. Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on... What is TDS? TDS reduces your taxable income and could even provide tax relief! The TDS collections account for 40 percent of the total taxes collected in the country. As the name suggests TDS is the amount of tax that is deducted at source in certain types of income . The TDS thus collected is deposited in the Government treasury within a specified time. How is it computed? Some of the types of income where TDS is applicable include salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and UTI/Mutual Funds, commission and brokerage

Modern day balanced mutual fund approach

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   In reality, most balanced funds have a strong tilt towards equity instead of a mix of equity and debt THERE are various types of mutual funds available to investors with specific features. Often investors have a particular idea about a specific type of funds in terms of their features and risks, but that is not what is actually available. Therefore, it is necessary for an investor to understand the actual position before picking up a fund. This requires some work on the part of the investor. One example can be the situation with balanced funds. Name is not representative: One of the first things that an investor has to understand is that the name of the fund is often not representative of its investment pattern. The name often represents only the aim of the fund, and not what it actually is.

ELSS Tax Saver

ELSS Stands for Equity Linked Savings Scheme.   ELSS Fund are mutual funds with 3 years of lock in period and offer income tax benefit under section 80C. They are open ended to purchase. Not all Mutual fund Investments are eligible for tax exception. List of Tax Saving Mutual Funds   Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 Reliance Tax Saver (ELSS) Fund IDF

Should you invest in tax-free infra bonds?

THOSE looking to save tax should take note of the latest buzz in the debt markets. Power Finance Corporation ( PFC ) and Housing Urban Development Corporation (Hudco) have launched bonds that will help you save more tax than your regular infrastructure bonds. Soon, IRFC and NHAI are likely to follow suit with similar bonds. KP Jeewan, general manager, debt markets, Karvy Stock Broking, says: "The coupon in these bonds are completely tax-free and those in the highest tax bracket can expect an effective yield of 10.75 per cent, compared to the 9.5 per cent a 10-year public sector bond would offer." The PFC and Hudco offerings are of 10- and 15-year tenures, with coupon rates of 7.5 and 7.75 per cent, respectively. Unlike other regular tax-free infra bonds, the tax benefits in these bonds are not capped at ` 20,000. Even besides these tax free bonds, those in the highest tax bracket have had plenty of opportunities to invest in tax saving infrastructure bonds under 80 CCF i
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now