Hi Sreekanth,
I am invested appox 45 lakhs in the below mutual funds 2/2.5 back for long term > 10 years with SIP, but Since they are not direct funds is it advisable to switch at this stage to the corresponding direct funds.. or shall i continue with the same , i understand the benefits of Direct fund but the time when i invested 2 years back i was not aware of the direct funds.. any suggestion you would recommend
HDFC balanced Fund (G)
HDFC Midcap opportunities fund (G)
Franklin India High growth companies fund (G)
3 Answers
Hi,
As your time-frame is long-term, you may switch to direct plans..but kindly note that switching is treated as normal redemption and gains if any can be subject to taxes.
Kindly read :
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
In case, you have to bear some taxes on STCG, you may stop further SIPs in Regular plans and start new SIPs in the same funds but in Direct plans.
Suggested readings :
https://www.relakhs.com/direct-mutual-fund-plans-buy-online/
https://www.relakhs.com/mutual-fund-direct-plans-vs-regular-plans/
I have two questions
- Is there any restrictions Rs 50000 per year per fund house for mutual fund investment direct.
- If I invest Direct mutual fund schemes through IDBI or HDFC bank trading account, where money will be debited from the linked savings account and fund units will be credited to the linked demat account, brokerage will be still deducted (meaning I will not get benefits of higher NAV due to direct purchase)?
Hi,
1 - No such restrictions.
2 - If you are investing in Direct plans through your Demat accounts/online platforms, you will get the benefit of higher NAV (if any) for investing in Direct plans, but these platforms can charge you subscription fee or service fee which is not related to mutual fund investments.
(Suggest you to kindly post your questions as separate/new Forum threads).
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Hi Sreekanth,
I have invested in the growth option of a fund through an agent/broker. I want to switch to direct in the same scheme without him knowing. Is there a way to do that? If not, are there any implications if I discontinue the SIP and start again in the same fund through direct. Will I lose out on the compounding effect?
Thanks in advance
Mamta