How to Switch from One Mutual Fund to Another

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Introduction:

Mutual funds continue to be a preferred investment option, offering returns above inflation rates and flexibility in terms of investment amounts. One challenge investors may face is figuring out how and when to switch between different mutual funds. Switching from one mutual fund to another can increase returns, decrease risk, and improve fund performance.

In this article, we will provide guidance on how to switch from one mutual fund to another, aided by online investment apps.

Mutual Fund Apps:

In recent years, several digital platforms and mobile apps have emerged that make investing in mutual funds online easier. Here are some popular apps available in the market for investment in mutual funds:

  1. a) Bajaj Finserv App – This app offers a user-friendly interface to help investors research, analyze, and invest in mutual funds.
  2. b) Moneycontrol App – The Moneycontrol App offers investors access to a wide range of mutual funds and market updates.
  3. c) myCAMS App – myCAMS Mutual Fund App allows you to invest in mutual funds, access your investments and track your portfolio performance.
  4. d) MF Utility App – The MF Utility App is an integrated platform that enables investors to transact in mutual funds through a single window.

III. Step-by-Step Guide:

Switching from one mutual fund to another will involve withdrawing your investments from one scheme and investing it in a new one.

Here are the steps involved in a switch:

  1. Evaluate your current fund: Take a closer look at your current mutual fund investments, including their returns, risk profile, and expenses.
  2. Identify your investment goals: Identify your investment goals and look for mutual funds that align with your investment objectives.
  3. Select the new mutual fund scheme: Research and pick the new mutual fund schemes that match your investment goals and are performing better than the current scheme.
  4. Check exit loads and tax implications: Look for any exit load or tax implications associated with redeeming or switching the mutual fund investment. 
  5. Initiate the switch: Once you have considered all the above factors, initiate the process of redeeming the investment in the current fund and reinvesting it in the new scheme.
  6. How to Switch from One Mutual Fund to Another:

You can make a switch from one mutual fund to another through these steps:

  1. a) Visit the website or mutual fund app: Log in to your preferred investment app or website and access the mutual fund switch feature.
  2. b) Select the mutual funds: Select the mutual fund from which you wish to switch and scroll through the list of available mutual funds to select the switch target.
  3. c) Confirm and submit the switch request: After verifying the purchase price, confirm the switch transaction and submit the request.
  4. d) Document submission: Complete the KYC and investment-related documentation as necessary.

Switching from one mutual fund to another can help you to generate high returns and reduce risks. The process is easy and can be initiated through online mutual fund apps. 

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