HDFC Mutual Fund has modified the exit load provisions under Direct Plans of all the schemes with effect from January 1, 2013. The changes are specifically being made for subsequent switches - out or redemption after when the first switch has already been made. So, any subsequent switch - out or redemption of such investments from the Direct Plan will not be subject to any exit load. Here are the more details.
Switch From Existing to Direct Plan
With Distributor Code
If the investments were routed through a distributor whether before or after January 1, 2013, any switch of units from Existing Plan to Direct Plan of a scheme / plan will be subject to applicable exit load, if any.
Here, the fund house has modified the provisions for subsequent switch - out or redemption request. So, any subsequent switch - out or redemption of such investments from the Direct Plan will not be subject to any exit load. The earlier notice, in such cases said that, after the switch, exit load under the scheme prevailing on the date of the switch will be applied for subsequent redemption / switch-out from Direct Plan.
Without Distributor Code
Where investments were made directly i.e. without any distributor code, Exit load will not be levied on switch of Units from Existing Plan to Direct Plan of that Scheme / Plan.
Switch From Direct to Existing Plan
If investments are again switched to existing plans from direct plans, no exit load will be charged. However, any subsequent switch-out or redemption of such investment from the Existing Plan shall be subject to exit load based on the original date of investment in the Direct Plan. Earlier, the notice said, after the switch from direct to existing plan, exit load under the Scheme prevailing on the date of the switch shall apply for subsequent redemption / switch-out from Existing Plan.
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