I invested via monthly SIPs in ICICI Prudential Focused Bluechip Regular Plan - Growth from January 2012 to December 2012. I have accumulated 1,000 units of the fund, which I wanted to switch to ICICI Prudential Focused Bluechip Direct Plan - Growth. I understand that there is no exit load in such a case. My query is regarding the redemption of these 1,000 units in a few months after the switch - will the exit load be charged if I redeem in August 2014? Should I wait till June 2015 so that there is no exit load?
- Sirish Renukumar
It is not clear why you wish to switch to the direct plan if you are planning to redeem it within few months. This is not a good idea. You are correct in assuming that there is no exit load if you switch from ICICI Prudential Regular plan to its Direct Plan. But, after switch, if you redeem the investments before completion of 12 months, you will be charged an exit load. It would be better you redeem your investments before switching and start a new investment in Direct plan to gain the benefit of lower costs and higher returns. Switch to the Direct Plan only if you want to invest for a long term.
This article was originally published on July 21, 2014.
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