How To Switch From Regular Plan To Direct Plan In Mutual fund

We had discussed about the Regular and Direct plans in our earlier blog post, where we have tried to reveal the benefits to invest in Direct plans, as someone rightly said, “Little drops of water make the mighty ocean.” and this is true with the Direct plan in context of Mutual funds.

Only 10,000 Rs monthly investments with a difference of 1.10% (in expense ratio) may not seem a lot, but with the compounding effect on it may fetch you near about 43 lakhs extra (We had discussed the same in our last blog post: Difference in Regular or Direct plans).

I am sure! If you are reading this blog post, either you are already investing somewhere in Mutual funds or pondering to invest in this.

For the new investors I will recommend investing with Direct plans only! With obvious reason- Expenses

but if you rather come in second category, already investing through the brokers or banks – You can switch all your existing holdings or investments in to Direct plans which will not only save your expenses, but you will also get more returns in the same scheme (Where you must be investing through Regular plans)

How can I change from Regular plan to Direct plan in mutual fund investments?

If you are registered for online transaction with individual AMC’s 

Go to the transaction page, where you are able to purchase, alter or redeem your Transaction. Pick the ‘switch’ option and click on the respective fund name. It will have a Direct plan option.

regular plans to direct plans

 

After submitting, confirmation page will be displayed, verify all the details like target scheme (scheme from where you are shifting the transaction) and destination scheme (where you are switching to) and “direct” at the suffix. then submit.

switch from regular mutual fund to direct mutual fund

if you are not familiar with the online procedure, you can also switch in through offline, by visiting fund house and ask for common transaction slip. Enter the folio no and fund name. Once they process it, they will send you an updated statement.

You need to create multiple separate account with each AMC if you transact through online investment account(AMC online investment account). So, a couple of online aggregators Like ETMoney, Kuvera, Oro wealth etc. started bubbling up allowing to invest or switch in Direct plans from any AMC in one single place. Not only this, you will get the recommendation for the funds according to your financial objectives without paying any dime for this service 

But, before switching to Direct plans, you need to consider Exit load, Tax structure, that i will cover up in another blog post. 

 

 

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