How to switch to direct plans of Mutual Fund?

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• Hi Sir,
  I just invested in NFO SBI multicap fund during inception in regular growth plan. Can I switch to direct plan now with out complicated process as it’s with in 4 weeks of investment?
  Sridhar

  • Dear Sridhar,
    Yes, you can.

• I have 4 mutual funds in regular category in ICICI DIRECT. I want to sitch the regular funds to direct. How can i accomplish that?

  • Sourav-Refer above post and also "Best Direct Mutual Funds Platforms in India to invest online".

• Hi Basu,
  i am a new investor and to be on a safer side i decided to invest in sbi magnum multicap mutual fund. Being a first time investor i approached a relative who works in SBI bank and got my SIP opened through him for this mutual fund. after a bit of research i realized that direct plan is better than regular plan and can be opened through ICCI direct or CAMS portal. He has also spelled the nominee name incorrectly when i verified online after portfolio creation and has not specified the SIP term as 5 years. It is just 3 weeks after having opened this SIP.
  My questions are:
  - Can i switch this regular plan to SBI magnum multicap direct fund now (opened 3 weeks back) without any losses ? -- Can i correct my nominee details online?
  -Can i change the SIP year to 5 years than the 99 years selected by him?
  -Is there any tax implications if i switch now?
  any suggestion would really be helpful.

  • Sam-Do you think ICICI Direct means Direct Mutual Funds investment platform?

    • Yes sir,, that's correct. I meant icici direct platform through which I could have invested in the same mutual fund.

      • Sam-Refer my post "Best Direct Mutual Funds Platforms in India to invest online".

• Hi basu,

  I am highly intrested on your many articals.

  I am at present reguler MF invstment platform in last 3 years i invested 3000000 INR throu LIQDUID & DEBT Fund and then using STP /month to EIQUITY in almost 7 fund till countinew my 40000/month STP.

  Please sujest me STP fasility is posibe in direct plan.

  My gole is long term almost 10 to 15 years

  • Masani-Yes, STP can be done with direct funds also.

• I have invested in 4 funds as SIPs previously through my agent. Now Agent guided me to opt a broker, in my case NJ wealth so that i can track my fund and also I never go through the email statement. and also little knowledge about funds. I know the loss.

  1. The advantages i found here is easy tracking of funds and
  2 For my children.

  Do you think i am right?

  • Suri-Tracking can be done with DIRECT funds also. If any value addition by adviser, then stick to NJ else skip.

    • Basu, You did advice a while ago to invest in direct funds through MF Utility. I should say that I was really interested, got a CANnumber and when I tried investing, I understood how bad the platform was and how unresponsive the customer care is. I know I am losing a percent but kept it to NJ, even that itself is not a great platform.

      As Suri said above keeping money in different AMCs and doing different trackings on a monthly basis, when it comes to SIPs, i feel till MF Utility or other direct platforms grow, stick to regular plans. Once again, I am sad about the loss, but keeps it simple for that fees

      • You may have faced issue because of internet connectivity. I invest online directly to mutual fund websites (ICICI, Reliance, UTI, Aditya Birla, HDFC) and it is very easy and user friendly way to invest into direct funds. Take help of someone if you are facing issue. I agree with Basu, direct plan is the best plan. IN regular plan the ARN keeps sucking your money without your knowledge and they give zero advise. My ARN never gave me advise but as soon as I switched existing units to direct fund he called me to inquire why I was switching because his commission was going to stop! So my advise is stop regular SIP and start direct sip and also switch all existing units to direct that way you will ensure someone is not sponging on your your hard earned investment. Cheers!

      • Vishnu-I personally has login with respective AMCs (CAMS, KARVY and Franklin R&T Agents). Enough to manage money rather than any other platforms.

• Hi ,

  I have been investing through different firms and in different proportion towards mutual funds.
  My investments are from Axis Direct , ShareKhan & Aditya Birla My universe and finally found out that none of the distributor are giving "direct option " .Thus i decieded to invest directly in direct mode but how to track all together under one platform.
  I am investing nearly 20,000/- as SIP monthly in 18 different plans

  • Ravi-Use MFU.

    • Hi Raj,

      Do u mean rok great a login account in MFU for tracking all the funds under one roof , by the way is it possible to change/switch my existing fund in MFU website is "direct" mode available ???

      Rgds,
      Ravi

      • Ravi-For your both questions, my answer is YES.

• Hello Sir,
  I am new in Mutual fund investor. I have invested SIP in four mutual funds in last 22nd September 2017 through agent. They are 1. SBI Blue chip (G): 2000/-, 2. Aditya birla sun life equity fund (G): 2000/-, 3. Axis long term equity :2000/- and 4. Reliance tax saver (ELSS) :2000/-.
  Sir please tell me, I am selecting the wright mutual funds or not ?
  According to review, can I change regular plan to direct plan right now ?
  Please suggest me.
  Thanks

  • Ranjan-Without knowing much about your financial goals and reasons for investment, it is hard for me to guide.

• Hello Mr. Basavaraj,

  I have invested in about 14 funds from 8 AMCs, most as SIPs and some in bulk. I do stop some SIPs after review periodically and then switch to new ones. For me the advantage I get with investing through a broker, in my case NJ wealth is that I can find everything on a screen and I can track them easily. I know I would loss about 1 to 1.5 % when I don't go DIRECT.

  The advantages are easy tracking of my funds and incase of disability or death my kins dont have to run around. It still seems great to add that 1 % in my investments. What do you suggest, with such diverse portfolio, should I still look for DIRECT or on the expense of brokerage, remain contended for the advantages as mentioned otherwise?

  • Vishnu-How about MF Utility? :)

    • As in?
      What's that?

      I don't take back the funds that's already invested. But usually do stop the sips that hasn't being performing for quite a period of time. I was searching for platforms in which I could invest in direct MFs, seems there are some like zerodha etc, but have to study if there are any hidden costs or fraud and if it's worth it

      Know that it's bad to time the market for SIPs, but for a bulk investment would like to wait for. So do you foresee any down in the current bullish scenario

      • Vishnu-MF Utility is the free platform for direct and regular funds investors backed by AMFI and all MF companies.

        • Basavraj,

          Is there a chance that one of these mutual fund companies may go bankrupt or any scenario in which we loss all money because of a company fraud (apart from market crash) ?

        • Vishnu-Anything can happen in the financial industry. Including the money you keeping in your savings account may vanish within few minutes, your bank may totally go bankrupt and if you fear and keep money in home, then someone can robber that. Rest you to decide.

        • Hehe.. but is SEBI any sort of a guarantor?

        • Vishnu-NEVER.

        • Thanks Basu,
          Nice blog and great responses.
          Cheers

  • Also as the markets are on an all time high, is it a right time to invest bulk in Mutual funds now?

    • Vishnu-If your goal is long term and did the proper asset allocation, then why to worry?

• Hello Sir,
  I have 2 funds wherein I invested lumpsum for couple of months (16,000 in total). Now these funds are temporarily suspended and do not take the fresh investment anymore. So I have an option to redeem or hold. I would like to know what should I do in such case or still there is any way to switch to direct plan (note: I have called up AMCs and they have advised to redeem or hold)?

  Thanks in advance for your guidance,
  Hemanshu

  • Hemanshu-Fresh investment is suspended means they will not accept your switch to DIRECT. Because even though you are switching to direct, but for direct funds, it is considered as a fresh investment only. Hence, they suggested you either to redeem or hold.

• Hi, I want to switch funds from advisor to direct. As you stated , by doing so it is redeeming, can I still claim the tax for the same.

  • Banuchand-Tax for the same MEANS?

    • For example, I have investigated 1L in tax Saving funds for this financial year in regular funds through distributor .For which now I want to switch to direct funds. Is that tax eligible since I'm exiting the regular fund scheme?. Thanks

      • Banuchand-Yes, when you switch from regular to direct, then for regular funds it is withdrawal and for direct funds it is fresh investment. You can claim the tax benefit while investing in direct funds. But do remember that switching from regular to direct funds in ELSS or Tax Savings Schemes will be allowed once the invested period completes 3 years.

        • But already existing funds are locked for 3 Years and being carried. I'm not understanding how this works. If you don't mine, could you explain me in detail. Thanks.

        • You can switch to DIRECT mode for ELSS only after 3 years completion and the whole investment that's switched will have 3 year lock in again in DIRECT fund. For the question on tax benefit, you can claim benefit because you "EXIT"ed from tax saver regular fund and entered into tax saver "DIRECT" fund locking the investment for 3 years again.