Insufficient funds in your bank account on SIP due date!!

What happens if your Mutual Fund Sip is registered for ECS/Auto debit  and there is insufficient funds in your bank account on sip due date?

If the ECS instructions/ Auto debit bounces on sip due date, the units allotted would be reversed. The SIP will continue. Fund houses are usually quite lenient in these matters and will overlook one or two instances of an SIP ECS/auto debit bouncing, and will not charge anything for reversal and will not produce the sip again if  transaction got reversed.

Your Bank may charge you for reversal of transaction and charges differ from bank to bank.

However if there are three recurring instances of SIP bounce then the SIP registration would be discontinued.

The Scheme Information Documents do contain details of when an SIP will be ceased. For example, it may be mentioned that if an SIP auto debit isn't honoured for a few consecutive instalments (the exact number of instalments — usually three — will be mentioned in the scheme documents for the respective fund), the SIP will be ceased and a communication will be sent to the investor.

 I have registered an SIP with auto debit. I wish to change the bank from which the amount is being debited. Can I change the bank mandate from which the SIP amount is currently going ??

 Yes, bank mandate can be changed. A fresh SIP Auto Debit Form has to be issued for the same.

The SIP auto-debit form of mutual funds contain the option to  Change bank mandate.  Investors may select this option in the form and submit it at either the mutual fund's branch, Karvy or CAMS Service Centre. It will take approximately 30 days to effect the change, and for debits to go to the new bank. 

For Change in SIP Bank mandate you have to submit:

1. Fresh SIP Mandate dully filled and signed by the investor

2.  cancelled cheque leaf of the new bank 

Also refer

Can I Cancel my SIP before the tenure??

How to create online access for Investments in Birla Mutual fund.

How to register for Franklin Templeton Easy Services

Franklin Templeton provides ‘Easy’ range of services that make it truly easy for you to access your account information and transact at anytime and from anywhere. 

 

 To register for the above facilities, all you have to do is, visit here:

https://www.franklintempletonindia.com/aspx_app/GeneralAccess/EasyServices/RegisterEasyServices.aspx

1. Simply enter your customer folio, mobile number and/or email id
2. Click "submit" and
3. And complete a simple validation process.

 

 

 

 Investors who have registered their email id with Franklin Templeton can avail of the following services

Subscriptions
Notifications

 

If you are register for Investor mail back then you will receive following information in your registered email address, select the service and format in which you would like to receive:

1. Account Statement

2. Portfolio Valuation

3. Capital Gain Statement

4. Transaction Details 

5. Dividend Details

Link of web page as where you can register for above services.

https://www.franklintempletonindia.com/aspx_app/Generalaccess/Mailbacks/InvNotification.aspx

 

 

Merger of Sundaram India Leadership Fund with Sundaram Growth Fund with effect from 11th July 2012.

Sundaram Mutual Fund has approved the merger of Sundaram India Leadership Fund with Sundaram Growth Fund. The merger will be effective from July 11, 2012, and investors have been given an option to exit without payment of any exit load between June 11 and July 10.  

Long term capital gain tax on gold mutual funds- NRI Investment

Query of Blog Reader:

I shall appreciate if you could let me know what is long term capital gain tax on gold saving mutual fund. XXXXX MF have deducted 22% on the gold mutual fund I sold after 1 year of possession. Which method they should follow 11% or 20% with indexation. I had them for 1 year 12 months. What indexation they should apply? Hope to hear soon from you

After reading your query it seems you tax status is NRI as tax is deducted at source.

In case of NRI's, TDS will be deducted on the sale proceeds. The TDS will deducted depending upon whether it is a short-term capital gain or long term capital gains.

 

The tax system for Gold Savings Fund or Gold ETF is similar to that of non-equity mutual funds like debt funds. When computing income tax, gold exchange traded funds are treated as debt funds.

How is TDS calculated for NRI Investment ?

 Long Term Capital Gain Tax on Gold mutual Funds for NRI 

TDS rate for Long Term NRI investor's under Non-Equity Scheme(s) = 20% with indexation benefit. (A)
Surcharge = A x 10% = 2% (B)
Education Cess = A + B x 3% = 0.66% (C)
TDS to be deducted = A + B + C = 22.66%

 

 TDS rate for Long Term NRI investor's under Equity Scheme(s) = NIL