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How to Switch from Regular to Direct Plan – The Economical Way

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How to Switch from Regular to Direct Plan

Investing in a mutual fund brings-in two ways of doing. Either by investing via an intermediary or directly with a fund house. So, if you wish to switch from regular to direct plan, this write-up has got you covered. Take a read: 

DIFFERENCE BETWEEN DIRECT PLAN & REGULAR PLAN 

Features  Direct Plan  Regular Plan 
     
Expense Ratio  Lower  Higher 
Expected Returns  High due to ZERO commission to the distributor or agent  Low due to deduction of commission to the distributor or agent 
Net Asset Value  Higher  Lower 
Documents  Can be submitted Online  Agent will collect it 
KYC Verification  Can be easily done Online  Agent will come & do the verification 
Portfolio Tracking  Self  By the distributor/agent 

 

SWITCHING FROM REGULAR TO DIRECT – WHY? 

Traditionally, investors use to buy mutual funds through banks, distributors, financial advisors, etc. In the year 2013, SEBI, introduced Direct Plan which enabled investments to make investment choices independently. Therefore, this step is known as a cornerstone reform in the world of the mutual fund.  

One of the best attractions of the direct fund is ZERO commission. Usually, the fund house charge commission stating that they’ll take care of your investment portfolio. But, if you are market-savvy and are good with finance, then direct funds are good to go. Not to miss, investing with Gulaq is hassle-free and of course free advisory.  

SWITCHING FROM REGULAR TO DIRECT FUND – THE PROCESS 

ONLINE 

Log-in to your mutual fund account, or your AMC can provide you or you can access it via KARVY or CAMS. Visit the transaction page, wherein you can buy, redeem or change your fund. Select the option ‘switch’ and click on the particular fund name you are willing to switch. There will an option of ‘Direct Plan’. It will take at-least 4 business days to reflect the change.  

OFFLINE 

Visit the nearest fund house branch and ask for ‘Switch Form’. Enter your folio number and name of the fund. In the process, the agent will send you an updated account statement.  

WHY INVEST WITH GULAQ? 

Apart from saving the commission amount, the struggle of choosing the fund and offering you the convenience of investing from your office or home, Gulaq (originally spelled as gullak) have done the research. You will find the best performing funds from the top AMCs in India.  

Like said, with Gulaq it’s about 

  • ZERO Commission 
  • ZERO Fees 
  • Zero Charges 
  • Free Advisory 

Start Investing in Direct Mutual Funds.

 

*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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