Switching to direct plans will not make your broker happy but will increase your wealth by upto 40% over time.
When you switch it is considered a redemption+purchase by the MF. For equity funds, if you cross 1 year, then exit loads are usually nil.
Long Term Capital Gains (LTCG) will be at 10% after April 2018, but the gains are calculated only from 31 January 2018 so the LTCG is also likely to be close to nil. If you switch before completion of 1 year, then you may incur Short Term Capital Gains. The math is slightly different for Debt Funds.
All said and done, switching to direct is highly desirable given the huge growth it adds to your portfolio. Send an email to switch@jama.co.in or signup on the app Jama.co.in and tap on Import Portfolio. You can easily place switch orders within minutes; its completely paperless!
Read more: 3 Reasons To Switch To “Direct Plans” of Mutual Funds
