Do I pay any charge for switching my SIP from one mutual fund to another ?

POSTED BY Nis ON March 4, 2014 5:42 pm COMMENTS (6)

Hi

I have been investing in one of the SBI MF (SIP) for the past 1 year. When I started, it was #1 in CRISIL rankings. Now it doesn’t look like a good option to invest. I would like to switch this SIP to another one in ICICI. What I would like to know is, will I have to pay any charge for switching from one fund house to another? Thanks.

6 replies on this article “Do I pay any charge for switching my SIP from one mutual fund to another ?”

  1. Nis says:

    Thank you all.

  2. bemoneyaware says:

    Moving either the whole or part of the investment from one mutual fund scheme to another mutual fund scheme within the fund family is called as Switching of Mutual Funds. For example you moved some or all your units from HDFC Top 200 to HDFC Balanced Fund would be considered as switching. A switch from one fund (source) to another fund (target) is actually a combination of two transactions:

    Redemption of units in the source or the scheme from where it is switched out
    Fresh purchase of units in the target or the scheme into which it is being switched

    What you want to do is stop investing in one mutual fund of a company and start in another Fund from another AMC. This will not be called as switch.
    For more information on switch Switching of mutual fund

  3. arjunp3000 says:

    Hi Nis,

    Hemanth is right in saying that there will be no charges in this case, and you can stop one SIP and start another in a different fund house.

    Of course, this will be a bit of a hassle. If you have a FundsIndia account, doing this is EXTREMELY simple and completely online. You can see a screenshot here – http://imgur.com/kK47Vt1

    With one click, and a scheme selection, you can make the change and be done with it. As you can see, you can also, pause/stop your SIP this way…

    Reg,
    Arjun
    http://www.fundsindia.com

  4. ashalanshu says:

    Dear Nis, what ‘ll you do next year, if same story in terms of lower return happens with the new fund you ‘ll invest from here onwards?

    Thanks

    Ashal

    1. Nis says:

      Hi Ashal, I agree with your point. Only investing small amount in SIP and that will not jeopardize my financial options. I am just trying to learn how it works. Thanks for the articles in jagoinvestor.

  5. Hemanth Chandra says:

    If you want to move SIP move from SBI to ICICI, you must stop the SIP in SBI and start a new SIP in ICICI .
    As per my knowledge, you cannot move the SIP from one fund house to another fund
    house.

    To stop SIP, there will not be any charges levied by SBI.

    Also, do you want to move the money that you invested till now in SBI to ICICI ??

    Regards,
    Hemanth.

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