Your mutual fund redemption order may have failed due to the following reasons:
- Insufficient Holding: You may not have enough units available for redemption or have already redeemed them.
- Minimum Redemption Criteria Not Met: Some funds require a minimum amount or unit for redemption. If your balance is lower than this, the order may fail.
- Units Still in Lock-in Period: ELSS funds have a 3-year lock-in period, and redemption is not allowed before that.
- Bank Account Issues: If your registered bank account is closed, inactive, or mismatched, the request may fail.
- SIP Units Recently Purchased (T+2 Rule): If you recently bought mutual fund units, they may still be in the settlement period (T+2 days for equity funds, T+1 for debt funds).
- Frozen Account or KYC Issues: If your KYC is not updated or your account is frozen due to compliance issues, the redemption will fail. You can update your KYC via CAMS/Karvy and check with your AMC.