Does it take longer to get mf units allocated and redeemed through zerodha coin (because of demat form) when compared to units held with MF directly?
Nope. If you place an order before 1.30 PM today, the order will be sent to the AMC on the same day and you will get an allotment the next day. Vice versa for redemption.
After redeeming, can I use it as margin to buy another fund immediately? Please note the redemption would take T3. Will I get same day NAV like how AMC switch works?
Afraid not.
If the redemption order is placed before 1.30 PM then yes, same day’s NAV.
Let me give you an example, to help you understand my question better:-
Imagine, I have SBI Blue chip fund in my portfolio, and the units have completed 365 days, so I can redeem them without any exit load.
Now, can I redeem them today before 1:30 pm and buy small cap fund before 1:30 pm with the money that I would get from redeeming SBI Blue chip? Since rredeemption takes T3 days, so after redeeming SBI Bluechip, will that act as margin so I can buy SBI Smallcap? Will I get the today’s NAV for buying smallcap fund?
This exactly happens if I had switched from SBI Bluechip to SBI Smallcap from the AMC website. I would have got the same day’s NAV.
Does Zerodha also work like this? @Bhuvan
Afraid not.
So I guess this is a drawback of having mutual funds in Demat format.
You can’t switch with same day NAV how it works at AMC website.
None of the articles on the internet have thought about this pointer. If you wait for T3 after redeeming, you would lose on the opportunity.
@nithin, nothing can’t be done on this?
Even kind of loan against security? So as the redeem command has already been executed so for this T3 waiting period if you provide margin and charge interest for T3? Do you see a business opportunity here?
1 Like