Live Now: ‘SWITCH’ Your Investments From Regular to Direct Plans
One of our guiding principles is to keep Investors First.
For that reason, all our efforts at Paytm Money are always inclined towards simplifying your investment experience and help you take informed investment decisions.
As an investor, your goal is to maximise your returns on the investments you make; and we assist you with same. We observed that many investors while they have been investing for years, don’t realise that they are and would be losing a lot of their wealth in hidden commissions that come as a part of higher expense ratios that comes into play due to the presence of distributor commissions. And no, if you are investing online or through Banking — you are not investing directly in mutual funds! We wrote about this here.
Many users have asked us for the option to move from regular to direct plans of mutual funds. Most were apprehensive either about the process (offline, paper driven, time consuming, etc) and possible implications of exit loads, tax, and the rest of that matters.
We are today happy to introduce this new feature on Paytm Money — ‘Switch to Direct’ which will ensure that as mutual fund investor you are able to get up to 1% higher return every year with direct plans, and are able to make smart switch decision from your existing mutual fund investments in regular funds.
With this, you can switch your investments from banks, distributors, offline channels, AMCs, or other online platforms seamlessly to Direct Mutual Fund plans on Paytm Money. We have piloted this feature with a small set of users over the past few weeks and have already witnessed few crore worth of investments already shifted to direct plans. It is incredible, you should definitely try!
Just to reiterate, here are the benefits of investing in direct plans of mutual funds:
- Get up to 1% higher returns on your investments
- Lower expense ratios
- No hidden commissions or distribution fees
- Of course, investing and switching is free on Paytm Money
For your reference, you can also check how much is the current difference between investment returns of direct plans and regular plans here.
Benefits of Switching your investments to the Paytm Money App
Switching to Paytm Money will help you in more ways than one. It not only increases your return on investment but also makes investing a cost-effective affair for you. Some of the advantages of switch include:
- You earn up to 1% higher returns on investment for your financial goals
- Track all your investments on a single platform
- Once your switch request is approved by the AMC, you can start an SIP on our platform
- Invest in top-rated mutual funds from all 40 leading mutual fund houses
- Experience safe and secure investing with 2-Factor Authentication, transparent tracking, and fingerprint protection
- Investing from over 200+ banks using UPI, Net Banking or Auto Pay.
- Fastest portfolio updates, investment top-up, easiest SIP management, real time transactions processing and so much more!
Investing gets all the more simple and convenient on Paytm Money. If you have not yet switched to direct plans, then download the Paytm Money app today and get investment ready within minutes.
Happy Investing :- )
PS: As switch transaction involves redeeming units from the regular plan and making a fresh investment in a direct plan, exit load (if any) and capital gains tax would apply.
In the case of equity funds, if you switch within 1 year from the date of investment, the Short Term Capital Gains (STCG) will be taxed at 15% plus an applicable surcharge. However, if you switch after 1 year from the date of investment, then the Long Term Capital Gains (LTCG), exceeding the threshold of Rs 1lakh, will be taxed at 10% plus an applicable surcharge.
In the case of debt funds, if you switch within 3 years from the date of investment, then the STCG will be taxed as per your applicable slab rates. However, if you switch after 3 years from the date of investment, then the LTCG will be taxed at 20% after indexation benefit.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns.
