Switch Fund: Please help me!!

POSTED BY Vikas Vyas ON November 30, 2012 7:10 pm COMMENTS (4)

Hello Experts!

I had initially started investing in 2008 with CAMS directly by filling forms. Then my Bank started online portal which made me easier to transact through Net Banking.

I am trying to trim my MF portfolio. I have DSP Equity (offline) through CAMS and DSP Top 100 (online) with different folio numbers respectively. 

The only logical way i thought would be to redeem DSP Equity from CAMS and then purchase the same amount in DSP Top 100 in the existing online folio number. By this way, I will consolidate in only one fund with only one folio number ie  DSP Top 100.

However, the lady at DSP toll free number whom I called, says that is not the correct way. Since you purchased in 2008 when NAV was less, you will get less units when you purchase again and it is a disadvantage.

I am so dumb, I do not understand beyond my logic.  For me it is simple of getting X from one fund and transferring the same X amount to  Y fund.  Can somebody advice me the correct way please. 

I have few more funds to go the same route before I can say I got a good portfolio with only 5 funds.

Thanks

Vikas

4 replies on this article “Switch Fund: Please help me!!”

  1. Vikas Vyas says:

    Thank you!

    Manish Sir! 🙂

    Your two lines output would do me good.. Please pen your thoughts at your convenience.

    Regards

    Vikas

  2. Vikas Vyas says:

    Hi

    Thank you so much for your prompt response. It lifts a big load from my head.

    Here is what I am planning to do. I have asked this query in another post. Based on the replies, I am planning to give a new outlook to my portfolio with limited funds.

    I have clutter of below funds

    1) DSP Equity 2) DSP Top 100 3) HDFC Prudence 4) HDFC Top 200

    5) Reliance Regular Savings Equity 6) ICICI Pru Discovery 7) IDFC Small & Mid Cap

    8) Reliance MIP 9) HDFC MIP 10) Sundaram Tax Saver 11) Fidelity Tax Advantage

    12) SBI Tax Gain.

    I am planning to keep only the below:

    1) DSP Top 100 ( Large Cap)
    2) HDFC Prudence (Hybrid)
    3) ICICI Pru Discovery
    4) Reliance Regular Savings

    I wanted to add Quantum Long Term Equity to the above but my Bank is not providing that fund house as an option.

    Notes:
    a) Holdings about 5 Lacs scattered everywhere with no proper % allocation as yet
    b) Some tax saver fund, I cannot do anything now, will have to wait 3 years completion
    c) Looking for long term of 10+ years for capital appreciation and retirement purpose.
    d) My plan of % allocation will be 40% in DSP Top 100, 30% HDFC Prudence 15% each to the balance two funds.

    Please give me a general outlook if you can.

    Thank you so much

    Vikas

    1. Ramesh says:

      Quite a good way of allocation and fund selection, I will say. And it seems you have given quite a bit of thought behind it. You can go ahead with it.

  3. Ramesh says:

    Your logic is correct.

    The amounts will be same. Only the number of units will be different, which is just a number. The important value is the total amount. You will not be losing anything. Go ahead.

    I cannot understand her logic too, by the way.

    It will be better, if you post your entire holding funds, so that if possible a better synergistic fund selection canbe given to you.

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