Are there any charges if I switch from dividend investment to a growth option of the same fund? What if I switch from a regular option to direct option?
A switch from dividend to growth option is a redemption and thereafter fresh purchase in the scheme. Simply put, growth and dividend options have different Net Asset Values. Such a switch could attract exit load depending on the fund house and fund's mandate. For example, if the fund mandates exit load up to a year, it can apply in case you switch before the stipulated period.
In case of switch from regular to direct plan, it would attract exit load, if exited before the stipulated period. While you make the switch, also keep in mind the taxation aspect of your investment.
I have been investing in an Equity Linked Savings Scheme fund (ELSS )through systematic investment plan (SIP) for more than three years now. How can I redeem it?
Your ELSS investment could have helped you derive the twin benefits of taxation and capital appreciation from equities. To redeem the investment, in the case of SIPs, each instalment is treated as a separate investment and will have a three-year lock-in period from the date of investment. You may request a copy of your account statement to find the clear units and redeem these. This can be done either online (through online investment facility provided by asset management companies or offline (through any financial intermediary or directly walking in any branch.
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Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company, answers your questions
