# How to switch the Mutual Fund from Regular to Direct Plan ## Intro If you know which mutual fund you want, it is always better to buy a direct mutual fund since it eliminate the additional TER (total expense ratio) which is charged by AMCs as a fee for distributors (the person who advised you to invest in the fund). The difference between TER of regular and direct plan normally varies between 0.5% to 1.5%. The switching of mutual fund is just 2 transaction of selling a fund and buying another fund from same AMC in a single order. There are 2 modes by which you will be able to perform the swtich 1. Online Mode 2. Physical Mode ## Online Mode This is the easiest method for switching the fund. 1. Login to the fund house or Mutual fund platform website (Create account if you dont have) 2. Select the fund you need to switch 3. After selection, you will be presented with options like Swtich, redeem etc. 4. Select switch and then select the fund to which you would like to switch 5. Then select whether you would like to do switch for full investment or partial. 6. Once you do the authorization by means like OTP after this, you will get a confirmation that the fund is under process for switching. ## Offline Mode If you have an old fund where the email ID is not updated, then this is the only option for you. 1. Go to the office of the fund house and ask for the form to do the switching 2. You will be receiving a communication from them once the fund is switched 3. If the fund house doesnt have that facility offline, ask for form to redeem the fund. Once the fund is redeemed and the amount credited to your account, invest via offline by filling the purchase form or online --- ### Notes 1. Funds in demat form cannot be switched. You will have to sell your existing fund and buy another one 2. Swtiching will attract the exit load if applicable and the Captial Gain tax 3. TDS will be applicable for NRIs 4. For any schemes having lock-in period like ELSS fund, switching can happen only after the period. You may need to exercise the Systematic Transfer Plan (STP) if you the lockin period doesnt end on a specifc dates for all the units