ETMONEY, the Times Group’s mobile app for investments, today announced that it would allow all existing mutual fund investors to convert their Regular mutual fund investments into zero-commission Direct Mutual funds. As of today, its estimated that retail & high networth individuals hold more than Rs.10 Lakh Crore worth of regular mutual funds in the Indian Mutual Fund Industry. All investors who convert to direct plans will also be able to do free, unlimited investment & withdrawal transactions in direct funds through ETMONEY app.
“Indians at large have been denied access to simple, low cost & transparent financial solutions for decades. We want to change that and this launch to simplify movement to direct mutual funds is in line with that mission”, said Mukesh Kalra, CEO of ETMONEY.
Regular plans have commission embedded in them while Direct Mutual funds don’t have any commission. Hence by shifting to direct plans, users can save upto 1.5% in commissions every year compared to regular plans. In recent scenario of volatile stock markets, if investors believe in holding back new investments, then converting one’s regular mutual funds to direct mutual funds can be a viable option.
“Keeping in line with trends in developed markets, this launch will ensure that Indians too can choose low cost investment products for their wealth creation purpose” said Ajit Kumar, Wealth Business Head, ETMONEY.
Last month, ETMONEY allowed users to invest in 1,000+ direct plans of more than 20 mutual fund companies, completely free of cost, and the company claims that its users switched Rs.150 crore from regular to direct plans. ETMONEY says it will now let all mutual fund investors in India to switch from regular funds to commission-free, direct plans within seconds.
ETMONEY says that the process to convert your funds to Direct Mutual funds is super-simple. Users need to upload their mutual fund statement on the app and within 30 seconds they will be shown the option to shift your regular funds to direct plans. The app also shows possible savings in commissions, applicable exit loads and taxes, so that they can take an informed decision. The app also assists you in getting the transaction statement by providing a step by step guide. Once converted to direct mutual funds, the investors will also be able to continue investing in them from the app at no additional cost.