A perfect lesson on SIPs

A week ago, I wrote about those investors who tried to invest in mutual funds on June 4 in order to get a low NAV. That was the day when the Sensex was down 9 per cent at the point. While most investors were cutting and running, a few brave souls decided to invest in equity funds that day and get a low NAV. Remember, if you invest before a designated cut-off time on any day, your units should get allocated at that day's NAV. However, there are many moving parts to the machinery, such as the front-end app you are using, banks, the clearing house, the registrar, the fund and so on. If the investor's money does not reach the fund in time, then the investor cannot be allotted units on that day's NAV. As happened on June 4 and 5, many people complained about th