Mutual fund account to get closed if invested via Paisabazaar? Know the truth

New Delhi: Have you invested in mutual funds via Paisabazaar? If yes, you need to carefully go through a mail sent by the fintech company a few days. The mail sent to a few Paisabazaar customers pointed out that their mutual fund account will be terminated effective 25 March. But that wasn’t the complete truth. 

In the e-mail, Paisabazaar had said that the customer’s mutual fund services account will be terminated effective 25th March 2022. “Post 25th March, 2022, you will not be able to redeem your existing investments in direct plans or make any new investment in them through the Paisabazaar platform," the company had said in its e-mail. 

The mail led to concerns related to Paisabazaar’s mutual fund business. Soon after the mail was sent to customers, reports surfaced that firm is shutting down its mutual fund business. The company has now clarified that such reports were unsubstantiated. 

Investors also got worried about their mutual fund investments. However, Paisabazaar has clarified that the particular mail was sent to a select list of customers who haven’t updated their data and who can’t be migrated to the platform the company is using. 

Paisabazaar told Mint that it has not been onboarding new customers as the platform is transitioning to a new external platform, which is managed by NSE. The transition move was taken to streamline back-end operations, the company added. Also Read: Statistics Ministry’s Twitter account hacked; name changed to Elon Musk briefly

“We have moved 99% of our consumers and their mandates to the NSE platform. These consumers continue to invest, set SIPs, redeem through the Paisabazaar platform…there is a small set of 478 consumers (less than 0.5% of total consumers) whose data on our platform was not updated and hence, could not be migrated to the new platform," the company’s statement was quoted in a Mint report. Also Read: TCS bags multi-year deal from Australia's Western Power