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Can we invest in the same Mutual Fund directly and indirectly?


Date: 30 Aug 2016   Posted By: Nilesh Patel     Group: Finance and Investments    Category: Mutual Funds   

This question is related to one of my question submitted
Is it good to invest directly online in a Mutual Fund?
For Example, considering this scenario: I have one Mutual Fund which was purchased through Advisor. Same I have linked online to fund website. Direct investment fund is also available for same fund which was purchased offline through advisor. So here can I purchase same fund directly even though I have the same fund from offline also? Now I will have two fund for same type, indirect and direct.
Awaiting advice.


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Author: Partha Kansabanik    31 Aug 2016      Member Level: Diamond     Points : 1  (Rs 1)    Voting Score: 0

I have read the question. My condition was exactly the same. I started investing in one mutual fund scheme through the advisor. When the direct scheme came into the market, I started investment in the direct scheme of the same fund. Later, after completion of one year (of the old regular scheme), I shifted the invested amount in the regular scheme to the direct scheme.

So for a period of more than six months, I remained invested in the regular scheme and also in the direct scheme of the same mutual fund.


Author: Mahesh    01 Sep 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Fund house allows you to purchase same funds using the directly and also through the agent or the adviser. So in such case the fund house usually puts the amount in different SIP IDs and that way two different investment can be easily managed. Both are mapped to your bank account and the real name. As both the investment are mapped using the PAN and the other financial details. So there is no issue or confusion with the investment.

This system is working and many people are doing this for some time. Later most of the people convert their funds into the direct funds, this is to save from the trail commission too. You can do the same too till the time you want to convert into the direct fund.


Author: Nilesh Patel    03 Sep 2016      Member Level: Gold     Points : 0    Voting Score: 0

Hi Partha,
you mean to say that existing fund which is taken from advisor can be transferred to direct investment also? So in this case, does advisor allows us to do this? Because due to direct investment, advisor will not get brokerage and also direct investment fund price NAV is more compared to indirect. One more thing, if advisor allows, still he gets brokerage from our fund?


Author: Partha Kansabanik    04 Sep 2016      Member Level: Diamond     Points : 0    Voting Score: 0

Mr. Nilesh Patel: You can transfer the money from regular scheme to direct scheme of the same fund. Only you have to check the exit load and tax implications. In my case, exit load was for 1 year and it was an equity mutual fund. So, I shifted the money from regular scheme to the direct scheme of the same fund after 1 year of the last SIP in the regular scheme.




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