How do you convert regular mutual funds to direct mutual funds?

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.

Can we transfer regular mutual fund to direct plan?

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.

How can you tell if a mutual fund is regular or direct?

In your CAS, there is a field called Advisor, and if that field is filled with “ARN” followed by a number code, then it is definitely a Regular Mutual Fund. In the same Advisor field if you find values like Direct / 0000000000 / INA100009859, then it is a Direct Mutual Fund.

What is the difference between regular and direct plans of mutual funds?

A Direct plan is what you buy directly from the mutual fund company (usually from their own website). Whereas a Regular plan is what you buy through an advisor, broker, or distributor (intermediary). In a regular plan, the mutual fund company pays a commission to the intermediary.

What is the difference between NAV direct and regular?

Differences between Direct and Regular Plans Net Asset Value (NAV): The TER of any mutual fund plan is adjusted from the NAV. Since TERs of regular plans are higher than those of direct plans, the NAVs of direct plans are higher than the regular plans.

What is difference between redeem and switch?

The only difference between switching schemes and placing a redemption request is that in case of the former, the money is directly invested in the new scheme while in the latter, the money is credited to your account and you can choose to invest the redemption proceeds in a different scheme later.

What is the difference between switch and STP in mutual fund?

A systematic transfer plan or STP allows you to periodically transfer (switch) a certain amount of units from one mutual fund scheme to another mutual fund scheme of the same mutual fund house. You may consider an STP from an equity scheme to a debt scheme or vice versa depending on the market conditions.