The default choice if growth or dividend option is not specified in your MF form

Sometimes, it so happens that you would have wanted to invest in the dividend option of a mutual fund, but when you received the statement you may have realised that your money has been parked in the growth option instead. The fund house or the registrar and transfer agent, who handle the record-keeping of mutual fund transactions, follow the rules laid down in the scheme information document (SID).

Incomplete application

‘Not in good order (NIGO) transactions’ are those in which the investor has not filled up the scheme’s application form as per the laid down process. There are glitches possible such as non-selection of the right option, missing document or incomplete KYC or even mismatch between the form and cheque cut.

Many a time, due to oversight, investors forget to tick the right option. In that case, the ‘default option’ is exercised while issuing units. For example, for transactions initiated through a distributor, the default option would be ‘regular plan-growth option.’ For a direct plan investor, the same would be the ‘direct plan-growth option.’ While most mutual funds designate ‘growth option’ as the default choice, a few such as Aditya Birla Sun Life AMC designate ‘dividend option’ as default option.