I want to switch my investments from FT Prima Plus Dividend Reinvestment scheme to Direct option of the scheme. I have been investing in the regular scheme for more than 10 years. Should I switch all units in one go or should I do it in 3-4 switches. Does it make a difference whether I switch at a high or low NAV?
-Ramesh
You are invested in a well performing fund with an excellent track record. Franklin India Prima Plus is a four-star rated fund. The fund may not be the best during rising markets but has shown resilience during market downturns. Over the past 10 years, it has delivered an annualised return of 23 per cent and is the fifth best fund in the large & mid cap category of 19 funds.
As you are already invested in equity fund and only want to switch to Direct plan of the scheme, you can do it in one go. The NAV that you get in both plans of the fund reflects the scheme’s gains or losses so it doesn’t matter if you switch in one go.
This article was originally published on August 07, 2013.
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