In the past 5 months since we went live to the public, we've received numerous queries from users asking a wide variety of questions. We can hardly blame them. Navigating through making an investment choice and managing our portfolio is not a trivial process. However, there are certain things you can do right away easily - like switching to Direct schemes and stop paying commissions - Why you need to switch to DIRECT schemes right now! So here's a step-by-step guide on what you can do right away to save thousands in commissions.
1. First things first - While this post details how to migrate existing holdings to Direct schemes, one can only do so for EXISTING holdings. It means, if you have SIPs from your agent/broker in Regular plans, they'll continue to stay active unless you send a request to stop them. Consider stopping your active SIPs while you switch your current holdings to Direct plans. Unfortunately, you can only do so through the intermediary that initiated your SIPs
2. After your Expowealth account is active, gather your MF holdings data in one place. You can easily do that using the 'Upload Transactions' utility on the Expowealth portal.
- Visit the CAMS page in the link mentioned in step 1. Enter the email address linked to your MF holdings.
- Fill in the details on the page as mentioned on the box. Make sure you select parameters as strictly mentioned here.
- The CAMS statement will be triggered to your email address within 5 minutes
- Upload the PDF on Expowealth. It'll read the transactions automatically and generate the portfolio on the Dashboard.
3. Notice the green bar above? We show exactly how much commissions you can save vis-a-vis switching to direct schemes. The schemes are bucketed by default as Direct and Regular schemes.
4. Click the switch button next to the scheme you want to switch to. A pop-up asks for the details of the switch.
5. Select the folio from which you need to switch-out from. In the above image, we are switching-out from HDFC Mid-Cap Opportunities.
6. Select the scheme you need to switch-in to. In the above image, it's the HDFC Gilt Fund.
7. Select the number of units/amount you need to switch. Switching to direct schemes or to any other scheme is like selling the existing scheme and buying the new one. All the rules relating to Exit load and STCG apply to this switch as well. So carefully note the following three points:
- Point 1 indicates the maximum units available with you to switch-out from the scheme.
- Point 2 indicates the maximum units you can switch without any STCG. We automatically calculate this number from the portfolio data you uploaded on the portal. Remember Short term capital gain tax?
- Point 3 indicates the Exit load applicable on the scheme.
8. Make sure you will attract no STCG and Exit load, confirm the transaction and its done! It may take 3 days depending on the scheme and the amount you are switching for the transaction to be complete. Your dashboard will be automatically updated to reflect the new Direct schemes in lieu of the Regular ones.
9. Caution: You can switch-out from a Regular ELSS scheme only on completion of three years of lock-in period. If after three years you switch-in to the direct option of same ELSS fund, there will be another lock-in of three years. However, you'll get the relevant 80C benefits for this switch. So pay careful attention to which scheme you are switching-in to.
The scheme shown above is used only for illustration purpose and should not be construed as a recommendation for investment. Hope you find this helpful.