1. Your advisor could be benefitting from trailing commissions if your fund is of Regular Option having his ARN Code as a distributor, which you may recheck.
2. All dividend reinvestments will also continue to be regarded as standard regular plans till they are switched.
3. For investments made through a Distributor code (Amfi Registration Number), a one-time exit load is levied on the switch.
4. Funds without an ARN code or as a direct application move to the direct plan without any exit load.
5. An investor who is registered for a SIP / STP without Distributor code will automatically have future investments processed under Direct plan.
6. All new instalments of running SIPs and STPs will be considered direct if investors have applied directly without listing a distributor ARN code.
7. An investor who has registered for a SIP / STP through a distributor can request the AMC to process future instalments under the direct plan.
8. Since a switch transaction is a simultaneous redemption and purchase, it has LTCG / STCG tax consequences on redemption too.
9. If opting for Direct Option in funds, you should ensure that you do not fill the distributor's ARN code.
10. An upfront commission (called Distribution or Sales Incentive) of 1% max.(depending on fund) is paid to MF distributor (denoted by ARN Code) in the purchase month, only for Regular Option funds, which can be recovered as per proportionate days if fund units get sold within a year.
11. A trail commission is paid every year on these funds till investment is withdrawn, which is 0.2-1% for equity funds, and 0.1-1% for debt funds.
12. In any case, you shouldn't hesitate in directly asking your advisor as it is your investor's right.
2. All dividend reinvestments will also continue to be regarded as standard regular plans till they are switched.
3. For investments made through a Distributor code (Amfi Registration Number), a one-time exit load is levied on the switch.
4. Funds without an ARN code or as a direct application move to the direct plan without any exit load.
5. An investor who is registered for a SIP / STP without Distributor code will automatically have future investments processed under Direct plan.
6. All new instalments of running SIPs and STPs will be considered direct if investors have applied directly without listing a distributor ARN code.
7. An investor who has registered for a SIP / STP through a distributor can request the AMC to process future instalments under the direct plan.
8. Since a switch transaction is a simultaneous redemption and purchase, it has LTCG / STCG tax consequences on redemption too.
9. If opting for Direct Option in funds, you should ensure that you do not fill the distributor's ARN code.
10. An upfront commission (called Distribution or Sales Incentive) of 1% max.(depending on fund) is paid to MF distributor (denoted by ARN Code) in the purchase month, only for Regular Option funds, which can be recovered as per proportionate days if fund units get sold within a year.
11. A trail commission is paid every year on these funds till investment is withdrawn, which is 0.2-1% for equity funds, and 0.1-1% for debt funds.
12. In any case, you shouldn't hesitate in directly asking your advisor as it is your investor's right.