The switch is a gateway to switch your regular mutual fund plan to a direct one.
What is a regular and direct mutual fund?
As the name suggests, a direct plan is purchased directly from the mutual fund company (AMCs) or online platforms without paying any commission and brokerage. On the other hand, a regular plan is what you have to buy through an advisor, broker, or distributor (financial intermediaries).
What is the benefit of switching to a direct mutual fund plan?
Switching to a direct mutual fund increases your return on investment, unlike regular mutual funds that usually have a higher expense ratio thus reducing your ROI.
Do I have to pay a commission after switching to a direct plan?
No. Only regular plans have up to 1.5% extra commission which goes to agents while you don't have to pay a single penny for commission in direct plans.
How to switch to a direct plan on Groww?
If you have invested via Groww, simply go to your dashboard and select the regular fund you want to switch. Then, Click on ‘Switch’ and then click on ‘Select Direct Fund’. Lastly, select the fund and confirm the switch.
Can I select any other direct plans of the same AMC?
Yes, you can either switch to the direct plan of the same mutual fund you have invested in or any other direct mutual fund of the same AMC. You can utilize the search bar on Groww to look for more funds and invest.
Are there any charges on switching?
Groww does not ask for any switching charges, but some charges such as exit load and capital gains tax might be applicable.