I am currently investing in one mutual fund 3500 Rs using direct plan(direct AMC) and 1500 for the same MF using regular plan.
Now I want to stop this regular plan and convert the same in direct plan i.e. 5000 in same fund using direct plan.
How it can be done?
First, stop the SIP of the regular fund. If it is equity mutual fund, then request for STP from the regular fund to direct for units which completed one year (to avoid taxation issue). Along with that, you have to register one more SIP in the direct fund for the equal amount of regular SIP.
If it is debt fund, then move the units based on the exit load and taxation condition.
If it is equity fund, then move all units which completed a year to avoid short-term capital gain tax.
If I stop regular sip and start direct sip and old unit which were purchased through regular mode remains untouched.
Do I still need to pay stcg?
Do you know how to transfer this regular MF units to direct one?
I don’t know the procedure
As long as you hold in regular there you find expenses. Hence, transfer those units which complete a year. Transfer is nothing buy apply for transfer in one shot like redeem from one fund and investing in new fund.Check with MF company. They guide you properly.