Switching mutual fund broker

POSTED BY Vishnumoorthy Adiga P ON January 2, 2013 6:53 pm COMMENTS (2)

Dear Manish:
I got a query related to switching the brokerage companies. If I am investing in one MF say “HDFC euity fund” from past 4 years through SIP through one brokering company XYZ.

Now I want to shift to some other brokerage company due some reason(may be bad service or company got collapsed), but continue invest in the same fund. Is it possible?

When I go to new brokerage company, will my past 4 years investment in the fund will be effected?

Please guide me in this query.

Thank you,

2 replies on this article “Switching mutual fund broker”

  1. you investments will not be affected. However until you make the switch your broker will be earning trail commission from the fund, cant do anything about this so dont worry.

  2. now that direct schemes are in place open an account with say HDFC mf and start investing with HDFC Equity Direct. The expense ratio of this fund will lower than HDFC Equity by about 0.5% or so.

    map your old portdolio with the new one

    Wait for all your SIPS or lumpsum investment in HDFC equity to be greater than 1 year and then switch to HDFC direct. Then no tax no exit load

    lower expense ration, more control, more corpus over a long run.
    If you want to know how expense ratios will affect your corpus you could use the calculator available in my website (latest post)

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