Switching from ELSS to LargeCap/Balanced/SmallCap

Q & A ForumCategory: Mutual FundsSwitching from ELSS to LargeCap/Balanced/SmallCap
shewaresushant@yahoo.co.in asked 9 years ago
Hi Sreekanth, For the financial year 2017 -18 , i have invested in 2 ELSS through a distributor starting March 2017 in SIP's of 5000 each. One is Birla Sunlife Tax Relief 96 and other is Sundaram Tax saver. I am planning to switch any one of the above to a balanced\Small cap fund so that i can withdraw the lumpsum after 4 -5 years. If I do that, then under section 80C, i can have the below ELSS - 60000 Provident Fund - 54000 Term Plan - 13500 // have to invest as this should have been my first priority Either PPF or NPS - 24000 // 2000 per month just to cover the Sec 80C limit This way i can cover my sec 80C . My questions are
  1. Can you let me know if i am doing the right thing by switching out either 1 of the ELSS
2.  Can i switch Sundaram Mutual ELSS fund to a HDFC Balanced or any other Small Cap fund which is not of Sundaram? 3.  Also Birla Sunlife Tax Relief 96 ELSS is through a distributer. Can i switch it to Direct under the same scheme? If Yes , then do i need to pay any excess amount for switching. 4. Also how will the distributer commision be impacted fr the above switch? 5.  If we invest in a Large cap fund, then while investing ,if we select the tenure as perpetual(lifetime), then can i sell my units any time after 1 year? Thanks, Sushant
3 Answers
Sreekanth Staff answered 9 years ago
Hi, 1 - You may retain Birla Tax saver fund.  2 - NPS , kindly read: https://www.relakhs.com/national-pension-scheme-nps-drawbacks/ 3 - May I know your investment objectives, goals & time-frame? 4 - Yes you can switch from Regular to Direct. Suggest you to retain the existing investments (as this is an ELSS fund, units are locked for 3 years) and make future investments in Direct Scheme instead. Read: https://www.relakhs.com/mutual-fund-direct-plans-vs-regular-plans/ https://www.relakhs.com/direct-mutual-fund-plans-buy-online/ https://www.relakhs.com/mfutility-invest-direct-plans-mutual-fund-schemes-online/
shewaresushant@yahoo.co.in answered 9 years ago
Thankyou for your response. Ill retain both the ELSS funds and switch them to Direct ones.
I am having the below goals as of now.
1. To invest 10k SIP which i need after 1 to 1.5 years.
2. To invest 15k SIP for 3 years. Can you suggest me as to in which Direct funds should i invest. Thanks,
Sushant
Sreekanth Staff answered 9 years ago
Hi, 1 - You may consider Ultra Short term fund or Short term fund. Kindly read: https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/ https://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ 2 - You may consider an MIP fund. https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/
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