Is it possible for an investor to switch over from a regular plan to a direct plan in the midway without informing the mutual fund advisor?
- K Janaki Vallabhan
Yes, you can switch from a regular plan to a direct plan. It is entirely up to you to decide whether you want to inform the mutual fund advisor. However, be sure to opt choose the direct option while making the switch online. If you are doing it offline, your application form should clearly state "direct" after the name of the scheme and also in the place of ARN code. Though many mutual fund houses have stopped levying exit load on switching to direct plan from the regular plan of the same scheme, you should check whether your fund house also follows the same policy. You should also consider whether the switching will invite any capital gains taxes as switching is considered a redemption from the existing plan and a new purchase in the new plan. You should consider these two aspects before taking a final call. For more, read: All about going direct.
This article was originally published on April 19, 2016.
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