Your mutual fund redemption order might have failed due to several reasons:
1. KYC or Account Issues:
- Your KYC might not be updated, could be invalid, or on hold.
- PAN details might be missing or not verified.
- Aadhaar might not be linked to PAN, causing authentication failure.
- Your account could be frozen due to compliance issues.
- Bank account details might be mismatched or unverified.
2. Balance and Redemption Issues:
- There might be insufficient units available for redemption.
- Units could be below the minimum redemption limit set by the fund.
- ELSS funds have a 3-year lock-in period, so early redemption isn't allowed.
- Recently purchased SIP units might still be in the settlement period (T+2 days for equity, T+1 for debt).
3. Transaction Processing Errors:
- There could be incorrect or incomplete transaction details.
- Processing delays or provisional orders might not be confirmed.
To avoid these issues, check your KYC, bank details, and fund balance before placing a redemption request. You can update your KYC through CAMS/Karvy and contact your AMC for assistance.