Types of purchase:
Lumpsum: Investing lumpsum in mutual fund, it means investing a single, bulk amount into a one-time mutual fund investment. This is as opposed to spreading it out over time, like in SIP (Systematic Investment Plans)
Additional purchase: It is simply a way to which you can add funds in your current mutual fund investment.
Do’s and Don’ts:
Offline:
- Investment cheque:
- Investment amount should be from the bank account where the first holder in the folio is the one of the account holders at bank. Third party investments are not allowed.
- Cheque must be a CTS cheque. Non-CTS cheque will not be allowed.
- Account holder’s name must be in the bank account proof to validate third party investment.
The date on cheque should not he older than three months or not later than application date.
A cheque of post office is allowed provided it has all the necessary details like IFSC, MICR, account number, CTS etc.
Investors should avoid any spelling error while issuing the investment cheque. In case of any spelling error, the bank will decide on the clearance of the cheque.
- There should not be any correction or over writing on cheque.
- NEFT/RTGS/Transfer letter:
- A copy of RTGS/NEFT/Transfer instruction issued to the bank should accompany the investment application form. In case of online UTR/NEFT/Transfer either the mail received from bank or UTR slip or anything which represents debit line and UTR details can be submitted with the investment application form.
In such case, cheque copy/bank statement needs to be attached if payment bank is not same as payout bank.
Online:
- Investors can invest via NEFT/RTGS and mention UTR while making payment for online transaction.
- Investors can make payment only through a registered bank account.
- Bank accounts are validated for third party check through penny drop testing mechanism.
Demat transaction
Details on application form must match with the depository participant (DP) details, else request for units in demat will be rejected, and units will be allotted in physical mode.
No NCT or any other request except additional purchase to be accepted for DEMAT folio. For additional purchase under the same folio investor will need to submit Client Master List (CML) copy with every additional purchase request.
Investors residing in US (NRIs, PIDs)
- For resident from USA, investor needs to be present in India at the time of investment and investment should be in physical mode.
Immigration stamp of arrival is mandatory since it confirms arrival in the country, and it should not be more than 45 days from date of investment. In case the arrival date is more than 45 days and investor are still in India, an in-person verification (IPV) is required from AMC CXO (Chief Experience Officer). The IPV must be on the AMC prescribed declaration form signed by investor and AMC CXO.
Investment through Power of Attorney is not allowed.
- Minor
- Minor can invest through a natural/legal/court appointed guardian.
- Investment amount can be from minors account or from the account of guardian registered in the folio.
- Guardian representing in the folio and in bank account through which investment/redemption is provided must be same. e.g., in folio, guardian is mother and in bank guardian is father: same is not allowed.
Status for investment, will be as per guardian’s status. E.g., guardian is an NRI as per KYC, the status will be captured as Minor- NRI.
Minor PAN is not mandatory; however, guardian must mandatorily provide PAN and should be KYC complied.
Investment bank can be either of minor OR guardian represented by minor OR guardian only. However, redemption payout bank must be of the minor.
- Change of guardian is allowed.
- Grandparents are not allowed to invest on behalf of minors.
Cutoff Grid for transaction and NAV applicability
NAV applicability for other than Liquid and Overnight fund
| Transaction | Funds | NAV applicability |
| Before cutoff | Before cutoff | Same day |
| Before cutoff | After cutoff | Next Business Day |
| After cutoff | Before cutoff | Next Business Day |
NAV applicability for Liquid and Overnight fund
| Transaction | Funds | NAV applicability |
| Before cutoff | Before cutoff | Previous day |
| Before cutoff | After cutoff | Same Business Day.
In case the transaction day is followed by non-business day, then NAV of day preceding the next business day will he applicable |
| After cutoff | Before cutoff | Day on which transaction is reported.
In case the transaction day is followed by non-business day, then NAV of day preceding the next business day will be applicable |
Liquid and Overnight – Purchase
- Valid Applications received at the designated official point of acceptance up to cutoff time of 1:30 m. and the entire subscription amount credited to bank account of respective Liquid scheme before the cut-off time of 1.30 p.m. i.e., the subscription amount shall be available for utilisation before cut-off time – The closing NAV of the day immediately preceding the day of receipt of the application shall be applicable IT-1 day NAV)
- Valid Applications received at the designated official point of acceptance post cut-off time of 1:30 m. and the entire subscription amount credited to the bank account of respective Liquid scheme on the day of receipt of application. The closing NAV of the day immediately preceding the next business day shall be applicable IT Day NAV}
- Irrespective of the time of receipt of valid application at the designated official point of acceptance and the entire subscription amount is not credited to respective Liquid scheme account. i.e., the subscription amount is not available for utilisation before the cut-off time – The closing NAV of the day immediately preceding the day on which the funds are available for utilization shall be applicable.
Purchase non liquid fund.
- Where the application Is received up to 3.00 p.m. — the closing NAV of the day immediately preceding the next Business Day.
- Where the application is received after 3.00 p.m.— the closing NAV of the next Business Day.
- In respect of valid applications received up to 3.00 p.m. and where the funds for the entire amount are available for utilization before the cut-off time i.e., 110 p.m. – the closing NAV of the day shall be applicable.
- In respect of valid applications received after 3.00 pro, and where the funds for the entire amount are available for utilization on the same day or before the cut-off time of the next business day – the closing NAV of the
next Business Day shall be applicable. - Irrespective of the time of receipt of application, where the funds for the entire amount are available for utilization before the cut-off time on any subsequent Business Day – the closing NAV of such subsequent Business Day shall be applicable.
Redemption non liquid Fund
- Where the application is received up to 3.00 p.m. on a Business Day – Closing NAV of the day of receipt of application; and where the application is received after 00 p.m. on a Business Day Closing NAV of the next Business Day.
- Note: In case of applications received on a Non-Business Day the closing NAV of the next Business Day shall be applicable.
