Hyderabad: 28°C
Business

Mutual Fund SIP Bounce: Who Levies The Penalty?

When a mutual fund SIP fails due to insufficient funds on the debit date, a penalty is charged, but not by the mutual fund company itself. The fine is levied by the investor's bank as a bounce charge for the failed auto-debit transaction. The article clarifies this distinction and explains the associated rules and consequences for investors.