Reliance small cap not to accept lump sum investments

Reliance small cap not to accept lump sum investments, only SIP and STp, are allowed , then how come my SIP from coins got cancelled today ?

Hi Sunil,

Please check out this link on our help centre which explains how our SIP works on COIN. As explained in the post, all the orders placed via BUY or SIP option on COIN are sent to the AMC as a lumpsum order. Unfortunately since, Reliance has temporarily suspended further investments via lumpsum mode thus your orders did not get processed. As the AMC intimated us over the weekend, all our clients will be receiving an email today from our end regarding the same.

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Hi Faiser , thanks for the quick reply, i got the logic behind it. But what is the solution now ? now i cannot invest more on that particular mutual fund ? so its frizzed i guesss

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@Sunil_Sethy, Not to worry.

you can use below funds to invest. They have similar sharpe ratios and expense ratios in the small cap segment.

Franklin India Smaller Companies Fund - Direct Plan
HDFC Small Cap Fund - Direct Plan
L&T Emerging Businesses Fund - Direct Plan

Only Franklin India Smaller Companies Fund - Direct Plan is not available on coin i guess. But you can buy others.

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Exactly, what if the time frame we set was for 10 years on the reliance small cap fund and we have already been part of that SIP from past 2 years… Stopping lump sum from AMC should not interrupt SIP on COIN… this will force investor to redeem their reliance small cap fund, which will be effecting power of compounding and go for alternate new SIP,

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The investments that you have already done will remain in your portfolio. The power of compounding will stillbe applicable on your exisitng investment and it will grow as per the change in the nav. IT is not necessary for you to redeem the units.

Thats true Faisr, however my concern is i will be not able to continue my on going SIP in reliance small cap.

Is there something we can do about it?

We are trying to get the AMC to change the conditions of the suspension. If not, then kindly select an alternate small cap fund from our list of mutual funds avaiblable on COIN.

Hi faisr,

In that case Zerodha coin is not good SIP option then. For example I have 4 SIP and all are performing good and some point time AMC suspend the MF as like Reliance small cap in this case zerodha can not initiate SIP and also i can not start new MF directly from AMC as they are not accepting new SIP.

Thanks,
Sandeep

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Yes… we can’t keep on increasing our portfolio…

once funds will do good… at certain point they will suspend it…

Power of compounding works only if you stay for longer period in one particular fund.

I have seen Sharekhan insta MF. Where they have 2 options.

  1. regular SIP - where we can still do sip on reliance small cap & mirae asset emerging blue chip.
  2. flexi SIP - thats just like the coin platform where it is simulated lump sum into SIP every month…

I know they only allow regular plan as of now.

Coin should work on this issue on highest priority. Before losing members.

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it means I cant invest in Reliance small cap anymore through coin?
What are the alternatives to invest in Reliance small cap?

oops…even mine got stopped. why zerodha guys are misleading users by giving two options (sip and lumpsum) then?

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@faisr @Bhuvan @nithin
please reply what are the alternatives to invest in Reliance small cap?

Hey Shivam, you can check out these funds below.

  1. L&T Emerging Businesses Fund - Direct - Growth
  2. Aditya Birla Sun Life Small & Midcap Fund - Direct - Growth
  3. HDFC Small Cap Fund - Direct - Growth

Note that in L&T, there is cap of Rs 2 Lakh for each purchase order.

Hi Faisr,

What is the solution for current problem. It can happen to other fund too. Current issue stopping me to buy MF from zerodha.

Thanks,
Sandeep

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Probably you can try to register on the AMC website of reliance and setup a SIP using their website.

Yes, it and has happened too. DSP, SBI, Mirae have all done this and with good reason. All smallcap funds are subject to risk and you will have to bear it as an investor. This has nothing to do with the platform but rather the nature of the smallcap funds

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@Sanket: SIPs are still allowed for DSP and Mirae. The issue here is that ZD sends out a bulk order by aggregrating the SIP from all participants in Coin I think.

what does it mean?
and I’ve already these MFs . I want to diversify my MF portfolio.

I think SBI Small and MId had stopped the inflows completely. And yes, Coin simulates SIPs.