As part of the online channel partner agreements that FundsIndia has signed with mutual fund companies, we (FundsIndia) are required to manage the debit/investment process for SIP investments. This has both advantages and disadvantages. Advantages are that we can offer SIPs on any day of the month to our investors, regardless of constraints in this regard set by mutual fund companies. Also, we can stop, restart, and change the scheme of SIP investments more dynamically than an SIP set up with a mutual fund house.
The disadvantage is that when we make a debit for the investment, we get information about the debit (whether it was made successfully or not) only a day or two after it happens. We can make the investment on behalf of the investor only at that point. Please note that we do not have your money in the interim, and we do not accrue any interest on it for these one or two days.
However, from the investor’s perspective, this should not matter as the debit is made on their account on the appointed date, and the investment is made very shortly thereafter. The difference of one or two days should not matter over the long term.