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How To Switch From A Regular Plan To Direct Plan in MF schemes?


With more information at hand for informed individuals, time is now right to work best ways to minimize costs and in return increase your returns on mutual fund schemes as well with zeroing in on direct plan instead of the ongoing regular scheme which though had been suggested by a advisor or consultant.

How To Switch From A Regular Plan To Direct Plan in MF schemes?

Please note that a switch from one scheme even in a case only if the plan under it are changed by the subscriber are taken as redemptions though the fund from the scheme remains intact. Also, the switch marks the subscription to an entirely new scheme with a new NAV or net asset value.

The process of this switch has been offered by the AMCs and it could be performed within the same AMC.

1. Instruction for Switch to Regular Scheme needs to be given: If the scheme has to be continued with the same asset management company under the direct plan they have to be instructed for the switch to be effected. For it you need to furnish the tear away slip that is affixed with the mutual fund application form.

2. Both the fund and scheme name needs to be provided: The scheme and the plan name from which you want to switch needs to be provided together with the details of the scheme with the direct plan option for the fund house to effect the transfer.

So, for cost savings it is better to switch to direct plans as with regular plans a substantial amount is paid towards expenses ratio. Nonetheless, you can lose on personalized beneficial advice of a mutual fund agent but to save on same front you generally have to forego something; here is the experience of an advisor .

Story first published: Monday, June 5, 2017, 14:09 [IST]
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