Can I switch ELSS fund from regular to direct?
You can switch from the regular plan of an ELSS mutual fund to the direct plan after the lock-in period of 3 years. This means that switches and redemptions are not permitted before 3 years. Therefore switching from regular plans to direct plans boosts your portfolio returns.
Can I convert my regular plan to direct plan?
Visit the transaction page, where you can buy, change, or redeem your fund units. Select the ‘switch’ option and then click on the respective fund name. It will have a ‘Direct Plan’ option; click on it and follow the steps displayed. It will take about four working days to reflect the change.
What happens when I switch from regular to direct mutual fund?
Many investors shift from regular to direct equity mutual funds when they realise the benefit. In a regular scheme, a fund house pays a commission to the agent. The expense ratio in a direct mutual fund is minus the commission. Take an example of the large-cap funds’ category.
Can I switch from one investment scheme to another?
Investors switch their investment from one open ended scheme to another within the same fund house for better financial planning. To switch within the same fund house, fill up a switch form specifying the amount/no. of units to be switched from the source scheme and name of the destination scheme.
What are the disadvantages of direct mutual funds?
Disadvantages of investing through a Direct Plan Comparing and analysing mutual fund performance and comparing it with the investment strategy most suitable for you requires more effort and attention than the Regular plan.
Is there any charge for switching mutual funds?
5) It is to be noted transfer of units of a mutual fund from one plan to another under the process of consolidation of the plans within schemes of mutual funds are not regarded as transfer and hence, not charged to capital gains.
Is there any charge for switching mutual funds from regular to direct?
Since switching from regular funds to direct mutual funds is considered as a new investment, the switch can attract tax on capital gains. The applicable taxes can also vary depending on the type of capital gains i.e. long-term or short-term capital gains.
Is direct plan better than regular?
Which mutual fund is better to direct or regular? Direct plans are the best for those who want to increase their mutual fund returns by investing directly through AMC. Whereas, the regular plan is suitable for those who do not have enough market knowledge and need advice and a regular review on their investment.
Can I switch from regular to direct ELSS funds?
In the case of ELSS also, a switch from regular to direct will be considered as you exiting your ELSS fund (regular plan) and investing in a new ELSS fund (direct plan). So, if you have any ELSS investments which you have been holding for over 3 years, you can go ahead and switch without any penalty.
Can I switch from a regular plan to a direct plan?
Yes, it is possible to switch from a Regular plan of a ELSS to its Direct plan once the lock-in period is over. (Note: Past performance may or may not be sustained in future. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
What can I do with my ELSS after 3 years?
After 3 years, you can switch to the direct plan of the same scheme or to any other scheme of the same fund house. You can also redeem your units and invest elsewhere or spend the money. Another option is to leave the money in the existing ELSS regular plan until you need it. An exit load will not apply after three years.
What is the lock-in period of ELSS mutual funds?
ELSS mutual funds have a mandatory lock-in period of 3 years. You can switch from the regular plan of an ELSS mutual fund to the direct plan after the lock-in period of 3 years. This means that switches and redemptions are not permitted before 3 years.