Common Errors and Explanation in Mutual Fund
- Is there a limit on how much (units/amount) investor can withdraw or redeem from their mutual fund investment?
Yes, min redemption amount is set by AMC. For ELSS funds, specifically, only units out of lock in period can be redeemed.
- What is the ARN code of Kotak Securities, in case client/potential client wishes to transfer their mutual fund holdings to Ksec?
ARN-0164
- If SIP is skipped then can one manually purchase the same & continue the SIP?
Even if a SIP is skipped, it gets cancelled only after 3 continuous non-payments. So, if 1 gets skipped, the next one will continue to get debited if the client has sufficient bank balance. Not applicable, in case the user themselves has cancelled the SIP. A one-time manual purchase can be done, but it won’t be part of the existing SIP, it’ll be a separate one-off transaction.
- Can investors place weekly, daily SIP orders?
No, presently, on Neo, investors can place only monthly SIP orders.
- Can a SIP to Lumpsum conversion be done?
No, SIP to lumpsum & vice-versa conversion cannot be done.
- How can one set up UPI autopay for SIP?
One simply has to enter their UPI PIN once to setup a SIP. One-time PIN is sufficient for first debit + setup of recurring SIP. UPI Autopay has a daily limit of Rs 1lac.
- Can I invest in SWP/STP in Neo?
No, SWP feature is currently not available in Neo (it will be available in couple months time). STP is not allowed for demat folios, hence it will not be offered on Neo.
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SIP cannot be cancelled less than 6 days before the debit date.
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If one has pledged their mutual fund units for trading margin, they need to first unpledged it, before being able to redeem the folio.
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I am getting ‘Account activation’ error while placing an order.
It takes T+2 working days for the mutual fund segment to be activated after you create a new account on Kotak Neo. You’ll encounter this message while your mutual fund segment gets activated.