Suppose the value of my mutual funds holding is 20k today and sell the mutual funds worth 15k but what if the price of the mutual funds decrease by half, will my order get cancelled or what?
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Yes, your redemption order will fail due to insufficient balance. After the 50% fall, the current value of the investments will be Rs 10K while the redemption order will be Rs 15K.
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So, can you provide the option to redeem the mutual funds in the units? So, that I can redeem the units which I have. Because I can’t predict the today’s or tomorrow’s nav. But I can pridict how many units I have.
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Feedback is taken. But we haven’t seen such issue so far.
Well because most people don’t actively frequently trade the mutual funds but I’m trading the mutual funds. That’s how I observed this loophole. Like comparing it to the shares too where I sell and buy the one share or two, here I would like to trade in the unit in the multiple minimum allowed by the AMC.
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@Abhinav_Goyal It seems Jupiter wants to encourage its users to remain invested for a longer duration and see their investment take the natural course of growth
Oh, that’s why they are not providing the redeem by unit option?
Cannot generalise at all. For most of the users it is easier to take a decision of how much to redeem when then know the value of the investments.
Typically, mutual funds are for investing rather than active trading. For those interested in frequent trading, ETFs are there.
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Well mutual funds are much more profitable for the trading. No tax, no brockrage, just a small stamp duty