You have Rs. 30L in your PPF account. You go to withdraw it for your daughter’s wedding which is 2 months from now. You know you are dealing with the sarkar so you go expecting a 1 week process.

The boy/girl/man/  at the counter tells you “sorry..there is a change in the rules”. You will be allowed to withdraw only Rs. 5L and the balance will be paid to you in installments of 1L each over the next 25 years …but it will bear interest at the same rate”.

How will you react to that? In Horror? stupefied?

We always told you that Mutual funds are liquid, right?

Well they are…but MF critic found out that it is not always true…..

http://mfcritic.blogspot.in/2017/11/a-nightmare-of-flawed-processes.html

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  1. Looks like a very rare case…and the blogger seems to be instilling fear in the minds of the DIY community based on this incident. Hope this should not deter investors from mutual funds and invest in the stupid life insurance policies.

  2. yes Swapnil this will not happen to you. by the way both me and mfcritic know the whole industry and it is unlikely that it can ever happen to either of us.

  3. From the screenshots the fund house is Franklin Templeton. I’m frankly shocked as my wife and I were very happy that they have the best online and customer support experience we’ve had. Even hiccups like purchase failures were auto-fixed in T+2 days and they show XIRR returns in the dashboard itself. the real mistake the fund house did was to do this “adjustment” sneakily behind the customer’s back.. probably assumed that no one would transact on a Sunday or check the “fine print”.
    Recently we’ve started doing “test” redemptions to check how the fund behaves instead of “set and forget” till retirement. Tata MF handled it very well. ICICI on the other hand did not even notice that SIP amount was not withdrawn from our bank for months after onboarding but their “reports” showed us SIP returns. That was enough for us to pull out of their schemes.

  4. if the public servant PM can do it with all your money in a single speech for the whole nation and go scot free, you can expect worse than such things for a private crooks too..

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