I have investments in the dividend option of HDFC Balanced. Can I switch my investments to the growth option of the same fund? What is the procedure to do so?
— Ram Narain
Switching from a dividend plan to growth amounts to a financial transaction. Meaning, your existing investment will be redeemed and invested in the growth plan. This can have tax implication. For this we suggest, discontinue fresh investment in the dividend plan, don’t redeem your existing accumulation and request a change from dividend to dividend reinvestment plan which is possible. Start investing your money from now on in the growth plan.