Mutual Fund Transactions through digibank FAQs

FAQs

  1. What is a Mutual Fund?
    A Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. It can be defined as the ideal investment vehicle for today’s complex and modern financial scenario.
  2. What are the advantages of investing in Mutual Funds?
    These are the advantages of investing in Mutual Funds:
    • Risk is reduced since portfolio is diversified
    • The money is managed professionally (by qualified Fund Managers)
    • Transaction convenience
    • Liquidity – Can enter and exit at any point of time
    • Transparency and well-regulated industry
    • Tax exemptions given by IT department
  3. Can Mutual Funds be classified?
    Mutual Fund schemes are classified based on their investment objectives, such as Equity Fund, Debt Fund, Liquid and Cash which is future categorised into sub-categories in each asset class.
  4. What are the different classifications of Mutual Funds?
    These schemes are classified by structure like Open ended or close ended schemes
    Further, the schemes are classified based on their investment objectives, such as
    • Equity: Equity schemes primarily invest in shares. Based on the objective investments could be in growth stocks where earnings growth is expected to be high or value stocks where the view of the fund manager is that current valuations in the markets do not reflect the intrinsic value. Various kinds of equity schemes are:
    • Equity Diversified: All non-theme and non-sector funds can be classified as equity diversified funds.
    • Mid Cap: These funds invest in companies from different sectors. However they put a restriction in terms of the market capitalization of a company, i.e., they invest largely in BSE Mid Cap Stocks.
    • Equity Linked Saving Scheme (ELSS): ELSS is an open-ended equity growth scheme that is offered by mutual funds in line with existing ELSS guidelines. The investments under this type of scheme are subject to a lock-in period of 3 years and, as per the Finance Act 2005, are allowed the benefit of income deduction up to Rs 1, 00,000.
    • Thematic: These schemes invest in various sectors but restrict themselves to a particular theme e.g., services, exports, consumerism etc.
    • Sector Specific: These are schemes that invest in a particular sector for example IT. They have a high degree of risk associated with them as if that a particular sector does not perform then their returns will suffer.
    • Index Funds: Index funds replicate the portfolio of a particular index such as the BSE sensitive index or Nifty etc. These schemes invest in the securities in the same weight age comprising of an index. NAV’s of such scheme would rise or fall in accordance with the rise or fall in the index .
    • Debt or Income Schemes: Such a fund invests in interest bearing securities mainly government securities and corporate bonds. This fund earns returns for its investors from interest income on its investments and profits on trading securities. In terms of risk, this type of fund is the least risky.
    • Money Market or Liquid schemes: These schemes invest in short term debt instruments issued by the government, corporate or banks. These are typically investments in short term papers like the CPs and CDs etc.
    • Gilt Fund: These funds invest exclusively in government securities. Government securities have no default risk, NAV of these schemes also fluctuate due to change in interest rates and other economic factors.
    • Fixed Maturity Plans: Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure. The basic objective of FMPs is to generate steady returns over a fixed period, thus immunizing investors against market fluctuations. FMP is an ideal product for all types of investors seeking to provide benefit across different parameters such as different maturities, minimum risk and tax efficient better returns. Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure.
    • Fixed Maturity Plans: Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure. The basic objective of FMPs is to generate steady returns over a fixed period, thus immunizing investors against market fluctuations. FMP is an ideal product for all types of investors seeking to provide benefit across different parameters such as different maturities, minimum risk and tax efficient better returns. Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure.
    • Balanced Schemes: Balanced schemes invest in a mix of equity and debt. The debt investments ensure a basic interest income, which the fund manager hopes to top with a capital gain from the investment in equities. However loses can eat into basic interest income and capital.
    • Monthly Income Plans: MIPs are suitable for conservative investors who along with an exposure to debt do not mind a small exposure to equities. These funds aim to provide consistency in returns by investing a major part of their portfolio in debt market instruments with a small exposure to equities. Thus an MIP would be suitable for conservative investors who along with protection of capital seek some capital appreciation as MIPs have an exposure to equities. However the monthly income is not assured.
    • Monthly Income Plans: MIPs are suitable for conservative investors who along with an exposure to debt do not mind a small exposure to equities. These funds aim to provide consistency in returns by investing a major part of their portfolio in debt market instruments with a small exposure to equities. Thus an MIP would be suitable for conservative investors who along with protection of capital seek some capital appreciation as MIPs have an exposure to equities. However the monthly income is not assured.
  5. What are open ended schemes?
    These are schemes that do not have a fixed maturity. The mutual fund ensures liquidity by announcing sale and repurchase price for the unit of an open-ended fund.
  6. What are close ended schemes?
    These are schemes that have a fixed maturity. The money of the investor is locked in for a specified amount of time. Occasionally, closed-end schemes provide a re-purchase option to the investors, either for a specified period or after a specified period. Liquidity in these schemes is provided through listing in a stock market; however, this option is not yet available in India.
  7. What is Net Asset Value (NAV)
    Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.
  8. What is Load?
    A load fund is one that charges a percentage of NAV for exit. That is each time one sells units in the fund a charge will be payable, it is called exit load.
  9. What is Repurchase Price?
    Repurchase Price is the price at which a close-ended scheme repurchases its units. May include Backend load. Also called Bid Price.
  10. What is Redemption Price?
    Redemption Price is the price at which an open-ended scheme repurchases its units and a close-ended scheme redeems its units on maturity. Prices here are NAV related.
  11. What is Systematic Investment Plan (SIP)?
    SIP or Systematic Investment Plan refers to the practice of investing a constant amount regularly, generally every month. SIP ensures that the investors' acquisition costs are approximated to the average NAV, as when the market will go up more units will be bought and when the markets come down fewer units will be bought. However it does not offer protection from losses.
  12. What is Systematic Transfer Plan (STP)?
    In this type investor transfers fixed amount every month on specific date from one scheme to another scheme.
  13. What is Systematic Withdrawal Plan (SWP)?
    This is a mirror image of an SIP only here the investor withdraws a constant amount regularly. This is again aimed at getting averaging effect mentioned above.
  14. What is Switch?
    Switching the units from one scheme of AMC to another, there is always a switch in where units are transfer & switch out from where the units are transferred.
  15. What is Dividend versus Growth options?
    Among the investors who subscribe to a scheme some might want a regular flow of income while others might prefer their income from the scheme to grow within the scheme itself. The dividend option caters to the first kind of investors by offering the investors divided at regular interval. Each time the dividend is declared the NAV of the scheme will fall. The growth option is for the second kind of investors.
  16. What is an Asset Management Company (AMC)?
    A highly regulated organisation that pools money from many people into a portfolio structured to achieve certain objectives. Hence it is termed as an Asset Management Company. An AMC manages several funds - open-ended /close-ended across several categories - growth, income, and balanced. Every mutual fund has an AMC associated with it.
  17. Who are Registrars / Registrar &Transfer Agents (RTA)?
    Registrar & Transfer agents are the entities who manage the purchase, redemption, bonus, rights & dividends of the units for the Asset Management companies. The data about the investor & their transactions with the AMC is also maintained by R&T Agents. The brokerage calculations & distribution of brokerage to distributors & marketers are also done by R&T Agents.
  18. What is a fund house?
    A group of funds managed under one umbrella. The most basic fund family would include a stock, bond and money market-portfolio, although many funds have variants like sector funds, balanced funds.
  19. What are a fund’s net assets Value (NAV)?
    The total value of a fund's cash and securities less its liabilities or obligations.
  20. What is a fund portfolio? OR What makes up a fund portfolio?
    A group of securities held by the mutual fund. A portfolio could be a mixture of stocks, bonds and cash.
  21. What is an ex-dividend date?
    Normally, one business day after the record date. Investors purchasing unit on or after the ex-dividend date are not entitled to collect dividends or bonus units. The NAV falls by the amount of the dividend distributed and/or bonus issued. The terms ex-bonus and ex-dividend often are used synonymously.
  22. What are the risks associated with investing in mutual funds?
    Mutual Funds do not provide assured returns. Their returns are linked to their performance. They invest in shares, debentures and deposits. All these investments involve an element of risk. Mutual Fund are subject to market risk, please read the Key information document (KIM) and Scheme Information Memorandum (SID) carefully before investing.
  23. What kind of income can I expect from a mutual fund?
    Mutual funds can be conveniently used to meet various income needs. You can invest in funds whose only purpose is to deliver regular cash distributions. Several income/ debt oriented funds pay monthly, quarterly, half-yearly or annual dividends.
    Other funds, whose objective is growth of capital, generally pay much lower income distributions. Since dividends are now tax-free in the hands of investors, such schemes are becoming increasingly popular.
  24. What is a new fund offer (NFO)?
    A security offering in which investors may purchase units of a close-ended mutual fund. A new fund offer occurs when a mutual fund is launched, allowing the firm to raise capital for purchasing securities.
  25. Can I invest in Mutual Funds through digibank app using branch savings account?
    You can invest in mutual funds through digibank app using digiSavings account only.
  26. What are the eligibility criteria to use Mutual Fund services over the digibank app?
    The following are required for transacting in mutual fund through DBS digibank mobile application:
    • Activate digiSavings account with DBS Bank Ltd.
    • Customer should be Mutual Fund(MF) KYC Compliant / Hold valid CKYC Number (KIN)
  27. How can one register for Mutual funds investment service on the digibank app? What are the eligibility criteria to use Mutual Fund services over the digibank app?
    Steps to register for Mutual Fund investment services on digibank app are:
    • Open a digi e-wallet account with basic customer details – Email ID, phone number & Age.
    • Convert this account into digiSavings account after performing a biometric verification
    • This makes you eligible to avail mutual funds investment services on digibank.
    • Pan Card number and KYC compliance is necessary/mandatory. If you’re not MF KYC compliant, then you will be directed to MF KYC registration form link, through which you should download and fill the form. After that simply visit a AMC Branch/RTA Office and submit it there.
    • Asses your investment risk profile on digibank and save it.

    Other Requirements:

    • The mode of operation would be Single only.
    • PAN (Permanent Account Number) is mandatory for mutual fund investments through digibank.
    • KYC Compliance: Investors are required to be Mutual Fund (MF) KYC compliant irrespective of amount of investment.

    The following are required for transacting in mutual fund through DBS digibank mobile application:

    • Activate digiSavings account with DBS Bank Ltd.
    • Customer should be Mutual Fund(MF) KYC Compliant / Hold valid CKYC Number (KIN)
  28. How can one "Buy"/"Sell" mutual funds on digibank?
    Once you have registered for mutual fund services on digibank, you can start investing (buy/sell) in Mutual Fund schemes through the DBS digibank mobile application. Click on the invest in mutual fund tab on dashboard/hamburger menu (select dash three lines) for buy/sell of mf through app.
  29. What is Mutual Fund / MF KYC?
    KYC compliance is a prerequisite to open an account and avail its services. Know Your Customer - KYC enables to know/ understand their customers and their financial dealings to be able to serve them better and manage its risks prudently.
    KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary.
    Thus, once you are successfully registered with CVL, NDML, DotEx, CAMS & KARVY, you can invest in any Mutual Fund in India. There is no separate number that is allotted on your successful registration. Your Permanent Account Number (PAN) is the unique identifier.
    Post November 30, 2012 an investor who wishes to open a new account/folio in a mutual fund where he/she has never invested before is required to complete KYC formalities in order to enable them to invest.
  30. Is Mutual Fund KYC mandatory?
    Post November 30, 2012 an investor who wishes to open a new account/folio in a mutual fund where he/she has never invested before is required to complete KYC formalities in order to enable them to invest.
  31. What is the difference between bank’s KYC and MF KYC?
    Bank’s KYC is a regulation from RBI and it is the process of a business identifying and verifying the identity of its clients. However, SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to 'know' their clients. The major difference between the two is the regulatory body mandating them.
  32. I have completed my KYC process through CVL, NDML, CAMS, DotEx & KARVY Ventures Ltd (CVL) but have never invested with any Mutual Fund. Will I have to complete KYC formalities again with each new KRA appointed by SEBI?
    If you have done KYC prior to 1st Jan 2012, you may need to do it again. If you are an individual investor and have done KYC prior to 1st Jan 2012:
    • Fill up the KYC details change form (Section A & B mandatory).
    • Submit the form with supporting documents at any AMC Branch office or Registrar & Transfer Agent (RTA) office directly.

    The following additional details are required:

    • Father/Spouse Name
    • Marital Status
    • Nationality
    • Gross Annual Income or Net worth as on recent date
    • In-Person Verification (IPV)
    • In-Person Verification (IPV) is required to be completed by the individual investors while completing the revised KYC as mentioned above.

    The following additional details are required:

    • The entire KYC process has to be done afresh due to significant changes in KYC requirements.
    • Please fill the KYC form.
    • Submit the form with supporting documents
  33. What are documents which are to be submitted for MF KYC registration? Do the documents submitted along with KYC application need to be attested?
    Yes. The documents Pan card copy and address proof needs to be self-attested.
  34. Can I link my Mutual funds transactions to multiple accounts?
    All investments done through digi bank app will be linked to your digi savings account. Investments done through iBanking or relationship manger or using treasure saving's account will be linked to your treasures savings account. Your investments done through digibank app can be viewed on app only.
  35. Do I have to separately register with AMCs?
    No, you don’t need to register separately with AMCs. As you register with us you can invest through any of the 14 AMCs we have tied up with.
  36. What is an investment ID in case of Mutual fund investments through Digibank App? Does the investment ID change with every transaction?
    As you register for this facility of investments on digibank, your registration details will be sent to RTAs and a unique Investment ID will be created immediately. This ID will help you track all your future investments. The investment ID remains constant for all the investments you make through your digibank savings account and this investment does not expire.
  37. Can I avail digibank mutual fund investment service if I don’t have a verified KYC profile at RTA? What are the steps?
    You cannot avail digibank MF services if your profile is not a verified KYC profile at RTA.

    Steps to be MF KYC compliant:

    • You can download the MF KYC form that has been uploaded on our app.
    • After filling this form, you need to physically visit the AMC Branch/RTA Office. Along with the form please submit the self attested Pan card copy and Address proof.
    • Post verification from RTA you will receive your investment ID, you can start investing in MFs then.
  38. Can I download the Mutual Fund KYC form?
    Yes, you have an option of downloading and filling the KYC form which is been uploaded on digibank.
    http://portal.amfiindia.com/spages/CKYC-KRA-KYC-FormforIndividuals.pdf
  39. How can I compare the rates of return between different groups of funds?
    You can explore the returns related information in the morning star report, under the fund information section.
  40. Do I require a DMAT account to invest in MF on digibank?
    No, you don’t require a DMAT account to invest in MF over digibank.
  41. How long would it take to activate this service of investments in MF through digibank App?
    There will be no delay in activation of your mutual fund services if you are MF KYC compliant then the facility will be activated immediately. If you non-MF KYC compliant then please download the MF KYC form and submit to nearest AMC Branch/RTA Office.
  42. Once I’ve registered for mutual fund services over digibank app, what should I do next?
    After completing your Mutual Funds registration, you will be notified with “Continue with your risk assessment to start investing in Mutual Funds now!”. After answering a few simple questions, you will receive a risk score, basis which you will can start making your investments.
  43. As I take the risk profiling test will my profile be automatically saved?
    No, the app will notify you with “Save your risk profile to start investing in Mutual Funds now!”, You can save your risk profile by clicking on the SAVE tab.
  44. What is a risk preference check? What does minimal – C1/small-C2/ moderate-C3/high-C4/significant-C5 risk profile mean?
    We will be asking you 5 questions. Basis the answers you give; we will provide you with a risk score. This score is indicative of the amount of risk you are willing to take.
    • C1 – Minimal risk – It means your priority is capital preservation and you are willing to accept minimal risks. In return, you understand that you may receive minimal or low returns.
    • C2 – Small risk – It means you are willing to accept small level of risk (under normal market conditions) in exchange for some potential returns over medium to long term.
    • C3 – Moderate risk – You are willing to accept moderate level of risk (under normal market conditions) in exchange for higher potential returns over medium to long term.
    • C4 – High risk – You are willing to accept high risks in order to maximize your potential returns over medium to long term.
    • C5 – Significant risk – It means you are willing to accept significant risks to maximize your potential returns over the long term. You accept that you may lose a significant part or all of your capital, and are prepared to make good the losses over and above the principal sum invested in certain cases (eg. Margin or leveraged investments, which have the potential to multiply profit and/or loss)
  45. How often can I change my risk profile? Once I receive a risk score, for how long will it be valid? Can I change my risk profile? Is there a minimum lock in period of my risk profile?
    Your risk profile has a validity of maximum one year. Yes, you can change your risk profile through digibank app by clicking on Re-assess my risk score tab on app. You can reassess your risk profile whenever you want. However, it is suggested to go ahead with the same profile, as it acts as a true indicator of the risk you are willing to take.
    No. There is no minimum lock-in period of risk profile but it has validity of one year.
  46. How do I decide which funds suit/ or are the best for me to invest in? Can I invest in schemes which are below my risk profile?
    Based on your risk score, digibank app will show display to you schemes that suit your risk profile. You can further decide your investments on the basis of the following search options present on digibank.
    • Mutual Fund Companies – list of AMCs
    • Categories
    • New Fund offer – first time offer for a new scheme
    • Goal based funds – Specifically for needs like child education, retirement and more

    Yes, you can invest in any scheme having a risk score upto your score.

  47. In how much time will my risk score get updated?
    The updation of risk score will happen on real time basis.
  48. Will I be notified to update my risk profile? Will my risk score automatically get updated in case my current risk profile expires?
    The validity of risk profile score is one year. Yes, a month before your risk profile is about to expire you will be notified by our app to reassess/update your risk score. The risk score will not be updated automatically. In order to continue investing you will have to reassess your risk profile.
  49. If after reassessing my risk profile my permissible risk limit reduces, how will my previous investments be dealt with?
    You will now only be able to sell high risk funds you owned i.e. no additional purchases will be allowed in the same.
  50. Will I be able to view the logs of questions I answered to complete my risk profiling?
    Yes, you can view it under the Details tab.
  51. Will my risk profile be consistent across all modes of investment in mutual funds with digibank app?
    Your risk profile will remain consistent across different modes of investment with DBS. Once you reassess your risk profile over digibank app, it will have an impact on your investments made via different modes of investment with DBS.
  52. Which all AMCs do I get an option to invest with?
    You can invest with any of the following AMCs.
    • DHFL
    • Reliance
    • Franklin Templeton
    • UTI
    • Aditya Birla
    • ICICI Prudential
    • SBI
    • Kotak
    • HSBC
    • DSP Blackrock
    • IDFC
  53. I have existing investments through DBS, Can I track my existing investments through my digibank MF a/c? Can view a consolidated balance of my investment in a particular scheme partly done over digibank and partly through other modes?
    No. You will only be able to manage and keep a track of those investments, which you have made via digibank app. Presently, you will be able to view/track investments done through digibank app only.
  54. In what name will my investments be made through digibank app? Why does my name appear differently on my savings account and investment account?
    Your investments will always be basis your name as per your PAN card. Your digisavings account will be basis name appearing on your Aadhaar card.
  55. What is the basis of searching funds?
    Following are the basis:
    • Mutual Fund Companies – list of AMCs
    • Fund Categories
    • New Fund offer – first time offer for a new scheme
    • Goal based funds – Specifically for needs like tax planning and more
  56. Can I keep a track of my day to day profits?
    For all those investments that you have made via digibank, you will be able to keep a track of your end of the day profits, by looking at the list of completed transactions, individually.
  57. How can I earn profit out of my investments?
    You can view your unrealized profit amount on app tab Dashboard for every investment (if applicable) that you have made and earn profit by selling it off/ redeeming it.
  58. How can I transfer my offline folios to online platforms?
    No, you cannot transact using existing offline investment folios over digibank app. Also at present we don’t provide the service/option of transferring offline folios to digibank app.
  59. Whom can I nominate for Mutual funds through digibank app? Does the nominee need to be KYC compliant? Steps for making a nomination in Mutual Fund Investments through digibank app
    Any individual can act as a nominee, in case a minor is nominated his guardian details like guardian name, date of birth and pan number should be provided. No. There is no of nominee to be KYC compliant On App while placing a fresh purchase or systematic investment plan transaction, there will be a provision to place a nomination which can be selected from Savings account or a new individual can be add as nominee for investments.
  60. I have purchased mutual fund units through digibank app. Can I send my nomination request directly to the respective Asset Management Company (AMC) of the mutual fund(s)?
    Yes. AMC(s) do accept any direct/ offline request for nomination or other transactions in mutual fund folios that are purchased through app.
  61. How would I know if the mutual fund transaction/ mutual fund investments have been successfully placed or not through app?
    You will receive a notification from our app, saying that your request has been successfully placed.
  62. How will I know if any transactions placed by me are failed?
    In case of a transaction failure from our end you will receive a notification from the app.
  63. What are the pending transactions in transaction history tab states on digi Bank app for mutual fund investments?
    Pending transactions indicate those MF transactions which have been requested by the user but are not yet/approved or rejected by fund houses.
  64. What can be the possible reasons for my mutual fund investment transactions being rejected?
    Following could be the reasons for rejection of transactions:
    • System Error
    • Changes introduced by regulators
    • Information mismatch
    • RTA’s own discretion
    • Natural hazards i.e. situations/ happenings which are outside of our control
    • In cases when lien is marked, leading to insufficient funds
  65. Can I view my mutual fund investment statements on Digi Bank app? Do I have an option to extract my mutual funds statements at any point in time?
    Yes. You can download Transaction statement for a month or financial year. Yes, you have an option to download/save/email/send your mutual fund statements through your phone using digibank app.
  66. Can someone else invest on my behalf?
    No. The authorised holder of digisavings account can only invest
  67. Is there a limit on the number of funds the customer can invest in?
    No, there is no maximum limit on the number of funds an investor can invest in.
  68. Can I purchase after the time which is displayed beside the scheme?
    In order to get the applicable NAV for the same day, you can purchase up to the cut-off time of the scheme, after which you will get the next day's applicable NAV. (If the next day is a holiday, then the applicable NAV of the next working day will be considered)
  69. How can I redeem my investments if, I’m in an out of coverage area?
    In order to place the redemption transaction, customer has to log in to the app and proceed with the same, or you can physically visit DBS Bank Branch and submit a written redemption request.
  70. Where can I view the specific details of a fund?
    You can refer to the KIM and SID (links of the same have been inserted over the app), these links will lead you to the AMCs website. Morning star report can also be referred to in order to compare the funds, their returns etc.
  71. Can I nominate a minor as my nominee? Can I nominate more than one person in my Mutual Fund Folios? Will my existing mutual fund nomination automatically get updated for all future online Mutual Fund purchases also?
    Yes. You are permitted to nominate a minor. However, if you nominate a minor, do provide the name, date of birth and PAN number of the minor's guardian in the nomination request. You can nominate maximum three people per mutual fund folio held by you. The allocation should sum up to 100% and it can be in any proportions decided by you.
    No. Nomination made in your existing mutual fund folios will not be updated automatically for the new folios created for fresh mutual fund purchases made by you. For all new folios, you will be required to make a separate nomination request; however, you can continue using the same nominees by selecting the prefilled details.
  72. Can I invest in mutual funds in joint holding pattern? What will be the mode of operation under the joint holding pattern? Can I add Joint Holders in my existing folios?
    No. Currently investment in mutual fund through Digi bank App is Single only.
    Mutual fund investments on digibank can be done only in single holding mode. All the provisions for joint holding are not applicable on digibank.
    No. You cannot add joint holders to your existing folios.
  73. Do mutual fund investments help in tax savings?
    Tax savings are scheme specific, only a few schemes provide it.
  74. Is there a way to exit a close ended MF scheme?
    Close ended funds cannot be exited until maturity; AMC can be contacted in order to raise further requests.
  75. Do mutual fund investments help in tax savings?
    Tax savings are scheme specific, only a few schemes provide it.
  76. Is there going to be any penalty levied on the termination of SIP investments placed through digibank?
    No penalty will be charged for termination of SIP investments placed through digibank app
  77. When will the terminated/stop/cancel SIP funds will get credited into the account? Are there any timescales?
    Termination refers to bringing your investments to an end. Hence, termination not equivalent to redemption of investments. In case of termination of an SIP all the future investments in the fund will be stopped. However, to receive the amount been invested in the fund till termination, you will have to place a request to redeem/ sell off his investments.
  78. Do all the schemes provide me an option to invest via SIP?
    Most of the schemes that are available over digibank provide an option to invest via SIP, but some of the liquid schemes don’t have/or offer this option to place SIP investment.
  79. Can I change my nominees for additional purchases in the same folio?
    Yes by submitting physical request to AMC / RTAs
  80. What are the max/min nominees can I have per investment?
    Minimum – One nominee
    Maximum – Three nominees
  81. When will I/We be able to view the unit holdings in my account from the time of purchase?
    The unit holdings will get reflected to your account as per timelines suggested by AMCs. Mostly the funds are updated on T+3 basis.
  82. What are the max/min nominees can I have per investment?
    Minimum – One nominee
    Maximum – Three nominees
  83. How is investing over digibank more convenient? Why digibank for MF investments?
    • No filling of multiple application forms.
    • Avoid usage of cheque book, multiple documentations, clearing risk & charges. Paperless method to invest in Mutual Funds. No application forms, no cheques, no documents required for any transaction.
    • View holding status; transact purchase & sale of mutual fund unit at one click on your phone. Direct credit to bank account for redemption and dividend proceeds.
    • You can view your mutual fund holdings on digibank mobile application. Information displayed is based on the data received from the Registrars/Asset Management Companies and is subject to change.
  84. Can I do investments on a holiday? Will I get information about bank holidays over the app?
    Yes, you can do investments on holiday but the transaction will be processed on next working day and You can view the information about holiday under the announcements tab.
  85. Do mutual funds pay interest? Do mutual funds pay dividends?
    No. Mutual Funds do not pay interest. Yes. Mutual Fund pays dividend whenever declared by the fund house Yes. Mutual Fund pays dividend whenever declared by the fund house
  86. How many folios can be associated to one investment id?
    There is no upper limit on the number of Folios that can be associated online.
  87. What should an investor do if he is holding more than 1 folio and wants to consolidate the same for his convenience?
    Customer to submit a written request for consolidation of folio. This request can be submitted at DBS Bank Branch or AMCs directly.
  88. When will I be able to view my monthly mutual fund investment statement? Will I receive a physical copy of my mutual fund investment statements?
    Monthly statement of the previous month will be made available over the app in the form of a PDF which can be downloaded.
    Yearly statements for complete financial year will be available in the form of a pdf which can be downloaded.
    Yearly and monthly mutual fund investment statements for complete financial year will be available in the form of a pdf which can be downloaded.
    For digibank customers no physical statement will be issued/sent by us. Statement on the app are generated by DBS on a real time basis. AMC also sends a monthly statement via mail or as opted by you.
  89. Can I get a real time view of my mutual fund investment transactions?
    Yes, you can view your transaction statement on the app using transaction statement tab and holding report as part of Dashboard on app.
  90. Will you take account closure request with mutual funds having balance? What will happen to balance and existing mutual fund investments?
    You can go to the Help and support menu and select close your account option. Before closure you need to ensure that all the existing funds are transferred to some other account along with investments which can be transferred in other platform of DBS Bank like investment through internet banking or by submission of application form by visiting the bank.
  91. Is digibank going to be advising customers about what MFs to buy?
    No, at no point in time there will be any advisory service provided by us. Once a customer’s risk profiling is done, the drop down list will show a list of funds the customer is eligible to invest in on the basis of his risk score. Customers can refer to Morning Star report while investing.
  92. What is the minimum amount a person can start investing and is there going to be any maximum amount?
    There is no such limit to start investing, as digibank savings account is a zero balance account. However, customer should have an amount sufficient (according to the schemes he’s investing in) to meet his/her investment and fee expenses (if applicable) requirements. There’s is no maximum limit for investments in Mutual Funds unless if any fund has specified.
  93. If there is a transaction failure when will the funds get credited? Will I get any notification?
    Yes, in case of a transaction failure, customer will receive a notification and will get the money back to his digisavings account within T+3 / 5 working days.
  94. Is there a limit on my daily mutual fund investment transactions?
    No there is no such limit for investments in mutual fund through digibank app.
  95. What type of mutual fund transactions can I enter into through digibank?
    • Initiate Purchase / Sale of Mutual Funds though digibank
    • Additional purchase of units under existing schemes in the portfolio
    • Redemption of Mutual Fund Investments through digibank
    • Start a Systematic Investment Plan
    • Switch of investments between mutual funds
    • View details of all your holdings
  96. After my first purchase, can I immediately enter another mutual fund transaction?
    Yes. You can invest/do fresh purchase/SIP immediately after first purchase
  97. Can I redeem my investments that I made via different modes other than digibank or different distributors?
    No. Only those investments that are made over digibank can be redeemed via the app.
  98. Is there a max/min limit up to which investments/redemptions can be made on a particular scheme?
    Investment / Redemption limits may differ scheme to scheme. You will get this information as you click on the scheme and chose to redeem.
  99. What happens to my previous investments if after updation of my risk score, my investments are not in the permissible risk bracket?
    In such an event you will not be able to make any additional purchases in the high risk funds you’d earlier invested in. However, you’ll remain invested in SIPs belonging to those high risk funds.
  100. In any scenario, will my SIP be terminated automatically?
    In the event where there are 3 consecutive months’ default on your payments, your SIP will be automatically terminated.
  101. How many mutual fund schemes can I invest in a day?
    No, there is no limit on number of schemes you can invest in a day
  102. What is a folio number? Can I have different folios with the same fund house?
    After you place an investment order in any Mutual Fund for the first time a Folio Number is generated for that particular fund. If you wish to invest in the same folio of that AMC then until the Folio number is generated you will not be allowed to place any further orders for that particular Mutual Fund. After the Folio Number is generated you can place any number of orders in any schemes of the Mutual Fund. The customer can purchase mutual funds in the same AMC with new folio number.
  103. My account has been debited but my investments have not gone through? In case of a network issue, how will I know whether the transaction has been processed or not?
    If the transaction was not completed, it will not be processed and if there is a transaction failure due to time out, you’ll be informed about the same and the amount been debited will be credited back to your account within T5 days by R&Ts/AMCs directly.
  104. Can I correct a mistake in the transactions I have ordered? Can one cancel the transaction?
    Once you have confirmed and submitted the transaction in the system, you would not be able to change it. Yes, while placing any mutual fund order, modify or cancel option would be available to you till the final confirmation of the order is placed by you. No cancellations/modifications are allowed once the transaction is submitted. You can only cancel any Systematic Investment Plan (SIP) transaction order placed by you.
  105. Can I use digibank transaction folios to do offline transactions as well?
    No, only those transactions for which orders are placed through the app can be can be transacted through it.
  106. Can I transfer my folios with other channel to digibank app channel and vice versa?
    You can submit physical request at nearest DBS bank branch for conversion of mutual fund investment holding from one channel of DBS to digibank app.
    No, at present you will not be able to view, track or use your online folios to invest through digibank irrespective of you holding online accounts with any of the banks.
  107. Can I later convert my digibank folios into offline folios?
    Yes, you can do so by submitting a written request with the branch/AMC/RTAs.
  108. My past transactions have not been updated on digibank, what shall I do?
    If an order is placed within the cutoff and is comfortably executed on the same day, transaction details get updated typically on the same day. In a scenario when orders are placed post cutoff or on holidays it should be updated on the next working day when the transaction actually gets processed.
  109. Can I make mutual fund transaction in units?
    Purchases in units are not permitted. However, you can redeem/switch your existing investments in units with partial /fully options.
  110. How will the NAV be decided once I place an order to subscribe/ redeem mutual funds?
    In case the order has been placed before cutoff time i.e. 1 pm on a working day, then NAV of the same day will be considered.
    In case the order has been placed on a working day post cutoff time i.e. 1 pm, NAV of the next working day will be considered.
    In case an order has been placed on a holiday, irrespective of the cutoff time NAV of the next working day will be considered.
  111. How can I redeem through digibank app?
    There will be an option/tab to redeem/sell the mutual fund investment through app which can be accessed through Dashboard where the portfolio is viewed or directly through redeem/sell tab on app.
  112. Are there any charges or penalties for terminating an SIP?
    No, there are no charges for SIP termination.
  113. Can I redeem partially in terms of amount and partially in units?
    You have an option to redeem partially in units and partially in terms of amount.
  114. How will I receive my redemption amount for investments done in MF?
    As you place a transaction/request for redemption of your MF investments, the said amount will be credited to your Digi savings account directly by the fund house.
  115. I placed an order to redeem some of my mutual fund investments, by when can I expect the redeemed amount in my account?
    It will be as per timelines prescribed by AMCs. Proceeds of redmeption for Equity will be credited by T+3 working days, Debt scheme by T+2 and Liquid scheme by T+1. T+10 days is the TAT of AMCs.
  116. How does the Systematic Investment Plan (SIP) work?
    On pre-decided dates on monthly basis of each fund houses, the investor has option to choose for investing in systematic investment Plan (SIP)
    You can invest in SIP Mutual funds schemes using digibank app.
    In case you do not have sufficient funds in your account in any specific month, the SIP would be rejected for that particular month.
  117. What date do I choose for my SIP? Is it compulsory to make monthly payments? What is the maximum number of months I can select for my SIP on digibank? Is there a minimum period for which I have to make investments through SIP?
    The dates that you can choose for your SIP would depend on the specifications laid down by the respective AMC. Payments towards your SIP can be made only monthly.
    Maximum number of months you can choose for your SIP would depend on the scheme you are planning to invest in. However, for most of the schemes we provide SIP till perpetuity.
    Yes, the minimum period for you will have to make investments through SIP is 12 months.
  118. What are the consequences of my SIP investments due to delay/default in monthly payments / due to lack of funds? What if I don’t have money in my account when my SIP payment is due?
    In the event of delay/ default of monthly payment due to lack of funds in your account, the date of execution is updated to the next month’s SIP date and SIP for that particular month will be rejected. With 3 consecutive default will auto terminate the SIP by fund house.
  119. Does digibank give me an option to enroll for STP/SWP?
    No. Currently this facility is not available on digibank app.
  120. Will I be reminded by the app for payments of my upcoming SIPs?
    A notification may be sent to you a few days before the SIP debit – requesting you to keep sufficient funds in his /her account so that on the SIP Execution date his SIP does not fail.
  121. If I've failed to make payment of my SIP, what is the next execution date? Will my SIP instalments automatically get debited from my account every month? Is there any penalty on default of SIP payment?
    In such a scenario the 'next execution date' is automatically updated to the next month SIP date. Yes, it will be deducted automatically from your account every month. No, there is no penalty. However, on default of 3 consecutive SIPs, your SIP will be terminated.
  122. Is there an SIP calculator available on digibank?
    No, we currently don’t have an SIP calculator on digibank. But in order to calculate the value of your SIP you can visit the site of any of the AMCs.
  123. What is a switch transaction in mutual fund investments?
    Some Mutual Funds provide the investor with an option to shift his investment from one scheme to another within that fund house. For this option the fund house may levy a switching fee. Switching allows the investor to alter the allocation of their investment among the schemes in order to meet their changed investment needs, risk profiles or changing circumstances during their lifetime.
  124. Can I switch in both in terms of units as well as amount? While switching is it necessary for both the funds to belong to the same fund house? Is there any load on switching? Is switch allowed for all the schemes? Can I switch partially in terms of amount and partially in units?
    Yes, you can switch both in terms of units and amount. Yes, the schemes should be of same fund house in case switching. Yes, load on switch depends on the underlying scheme and the time for which you stayed invested in the scheme. Switch transactions are as per scheme specific. You have an option to switch partially in units and partially in terms of amount.
  125. Can I switch to funds with a risk score higher than my risk profile?
    No. Switching will be allowed as per the risk score with the bank.
  126. How do I switch from a particular scheme?
    Click on the tab "Switch" in the Transact section. This will display all the folios held by you. Click on the scheme you wish to “Switch From”. There is a minimum transaction amount indicated against the scheme. Also the scheme you wish to "Switch To" carries a minimum transaction amount. Therefore, the amount which you will be switching will be higher of the two. The confirmed transaction in your portfolio will be displayed within T+3 days. Since this does not involve any transfer of funds, your bank account will not be affected.
    Switch Out is treated as redemption. Hence, in case of NRI's, TDS will be deducted on Switch out transaction also. The gross amount after deducting the TDS will be used for switch in Transaction i.e. units worth equivalent to the net amount will be utilized to switching in into the desired scheme.
  127. What are the cut-off timings for placing order?
    Cut-off time for same day transactions is 1:00 PM processed on best effort basis for same day NAV. All instructions received on transaction day before the cut-off time will be eligible for same day's NAV (except, Saturday, Sunday and Bank Holidays). For transactions placed post cut-off time or bank holiday applicable NAV will be as on next working day. Unprocessed deal after the cut-off time for the day will be processed very next working day.
  128. Will I have to make payments for my investments through cheques?
    No. Investments in mutual fund through DIGI bank app will be allowed using Digi Savings account only.
  129. Is there a minimum balance that I need to have in my savings bank account to use MF services?
    Even though digibank savings account is a zero balance account, but at any point in time the balance of your digiSavings account should be sufficient to meet your investment and fee expenses (if applicable).
  130. Will the transaction be processed if I don’t have sufficient balance in my account? If my account doesn’t have sufficient balance to make investments can I make partial payments through multiple bank accounts?
    No, it will not be processed i.e. your purchase request will be rejected. No. We do not permit payments through multiple accounts.
  131. How do I receive dividends from my investments? Can I track them?
    The concerned AMC will automatically credit your account with the dividend you are entitled to receive. You will be notified for the same. You can track the same in your investment logs and statements.
  132. What is the cut off time for entering the transactions?
    1 PM is the cut-off time to place transactions for today’s NAV through digibank app
  133. Is there a minimum transaction amount for each scheme?
    As decided by the AMC, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount in the Purchase screen after you select the Name of the scheme from the drop down menu.
  134. How to change the Mutual Fund Dividend Option?
    To change the dividend option from Payout to Re-investment or vice-versa, you need to send a duly filled & signed Request Letter with the subject ‘Change in Dividend Option’ for every Scheme in which you wish to make the change to AMC & Bank respectively.
    The Turn Around Time (TAT) for Dividend modification/Change of Dividend Option is 15 working days from the date of receipt of documents at AMC / RTA office. AMC will process the request on best effort basis within a reasonable time.
  135. Is an upfront payment necessary to carry out MF transactions?
    Yes, for a transaction to be executed sufficient account balance for investment and transaction fee (if applicable) is necessary for upfront payment. In case of a subscription/purchase/SIP, only once the amount is debited from the account of the investor/client and directly credited to the AMC’s account is the transaction considered complete.
  136. What is a morning star report? How can the morning star / fund information report be accessed?
    It is a report issued by a third party agency which lists out details like – Fund ratings, Assets Under Management (AUM), fund size, returns (Monthly/quarterly/yearly) of the different schemes offered by us. You can refer to this report while making investments. Morning star report will be available under the fund information tab.
  137. Can you give me the list of top funds to invest in mutual funds?
    Please click on the link https://www.dbs.com/digibank/india/dbsfundinformation.html to get more information
  138. Can I avail of a loan against my MF?
    Yes, you can avail loan against mutual fund. You need to visit nearest DBS Bank branch to avail this facility
  139. Do I get any tax benefit of investing in a mutual fund? Is there any tax saving mutual funds?
    ELSS and Retirement Plans offered by AMCs are tax savings mutual funds which provide 80C benefits.
  140. What are the tax implications of selling my investments in MF?
    Tax implications on selling investments is scheme specific as defined by AMCs. Kindly taxation impact before redeeming
  141. In how many days will I receive the funds in my account once I sell my MF?
    The money will be directly credited to your Digi savings account by AMC / RTAs as per the TAT followed by AMCs. Proceeds of redemption for Equity will be credited by T+3 working days, Debt scheme by T+2 and Liquid scheme by T+1. T+10 days is the TAT of AMCs.
  142. I need my Fund House Statement?
    Please call the contact centre of Fund House of whom you require the statement or visit the nearest DBS Branch

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