Switch existing SIP to direct plan

POSTED BY finnaive ON March 8, 2013 2:32 pm COMMENTS (2)

Dear all

I am looking to convert my existing SIP in Top 200 growth fund to the Direct plan of the same scheme. The SIP is being running for last 24 months now. The SIP was initially opened thru a distributor. when I inquired the HDFC Fund Customer care, they said its a 2-step process

1) I would need to switch the existing units from the current plan to the direct one. I was told “This will attract STT of 0.25% and exit load 1% will be charged in case the units are not completed 1 year from the date of allotment of each purchase”

2) Submit a signed form for Future SIPs to Direct plan conversion

Is this the correct process? is the conversion worth?

Thanks, finnaive

2 replies on this article “Switch existing SIP to direct plan”

  1. finnaive says:

    Dear FFC
    Thank you for your help.

    Regards

  2. Yes the process is correct. If you have an online account you could do it online as well.

    Is the conversion worth? It is expected that direct plans will give significantly better returns in the long run (at least more than 5 years). I have made this switch (in my case it was direct-regular to direct-direct)

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