nach return: High charges on NACH, ECS debit bounce: Even 17% return on mutual fund SIP may not be enough to recover penalties
Mutual fund SIP has become a popular tool for small retail investors to do small regular savings and get the benefit of higher returns from equity market. This facility empowers these small retail investors in a big way. However, the banking facility of ECS/NACH debit which allows automatic monthly deduction can turn this into a nightmare with very high bounce charges especially for small investors if they miss even one investment payment.
Sanjeev Govila Suresh Sadagopan Kotak Mahindra Bank Punjab National Bank National Automated Clearing House Axis Bank
Source: indiatimes.com