March 29, 2018

How to Switch MF investments from Regular Plan to Direct Plan Online

2018-03-29T11:29:00+05:30

Are you looking for mutual fund switching from regular to direct, mutual fund switch rules, switching mutual funds capital gains, how to switch to direct online and mutual fund switch time frame. Check this step by step guide process on how to switch between mutual funds, how to convert regular mutual fund to direct plan, how to switch MF investments from regular plan to direct plan online and offline and how to use Kuvera smart switch to switch mutual funds to direct plan without any charges.

When Direct Plans are Announced

In 2013, SEBI - Securities and Exchange Board of India asked all mutual fund houses to offer direct mutual funds. This means that there 2 types of mutual funds are there- regular plan and direct plan. Regular plan means the investor like me and you has to pay commission charges to brockers of AMCs. In Direct plan, this commission costs are null. Anupama Telang in Money Control have explained how to switch MF investments from regular plan to direct plan and it is a good read.

Why to Switch from Regular Plan to Direct Plan

When you swtich from regular to direct plan, your returns will be marginally high and in course of time it will become significantly high. Mutual Funds from Direct plans are bought directly from mutual fund houses and not from the ditributor. The commission usually goes to the distributor from investor is returned to the investor in the form of lower expense ratio. The returns in direct plans is maximum 2 percent higher than regular plan.

How to Switch MF investments from Regular to Direct Online

Method 1: You must have done KYC and updated AADHAR to do this. Go to individual AMCs, login to your account, go to transaction page where you can see purchase/switch/redeem fund options. 

Choose Switch option and select fund name from the drop down list.

The fund should have a DIRECT written in it. eg: Aditya Birla Sun Life Tax Plan (G) Direct.

Method 2: Go to any direct online mutual fund platforms provided by MyCAMSOnline, KARVY, MF Utility and select switch option.

Method 3: I use Kuvera for investments and it is completely free of cost. It is first free Direct Mutual Fund portal at https://kuvera.in where you get free fund recommendation, goal planning, automated rebalancing. You can join using my invite code UZ2Q9.

Step 1: Importing Portfolio

Login to Kuvera and select import portfolio.
Go to Karvy and request a CAS - Consolidated Account Statement.
You can provide any password for opening CAS.
Wait for 1 hour and you will get CAS document in email.
Download CAS, upload in Kuvera and enter password.

import portfolio in kuvera

All your mutual funds linked to the email id will be shown in Kuvera now.

Step 2:  Getting 500 coins by adding random goals

Select Set a Goal.
Add random numbers in goals and keep on adding them until you have 500 coins.
You need 500 coins to enable smart switch.

Step 3: Go to Smart Switch

Go to Smart switch and enable smart switch.

kuvera smart switch to switch from regular to direct plans


Smart switch will show you all the fund units that can be switched without incurring exit load or short term capital gains taxes.

Switch MF investments from Regular Plan to Direct Plan Offline

You will not able to switch to direct plans if you have chosen ICICI Direct, Funds India, Birla – Myuniverse etc. or held mutual fund in demat form. You can have to contact respective individual mutual fund houses for changing.

Visit the mutual fund house, ask for common trascation - Switch form, add details and the name of the Direct fund, submit the form and wait till it get updated and you get an updated AS.

Check out A Beginners Guide On How To Invest In Mutual Funds Online.

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