Is switching of schemes possible in MF via Coin

Zerodha Coin - Direct MF
1

Hi,
Iam planing to invest in MF via Coin.Have few queries:

  1. Whats the difference between direct MF & Regular MF offered by Coin platform

2)Lets say if i start investing in MF via coin and i plan to chose liquid schemes for that particular fund house, later say after 6 months or so is it possible to gradually shift some of my funds at parked under liquid schemes to equity fund under that particular fund house (this if i find that market is doing exceptionally well).

2

Check this post which explains the difference between direct and regular.

What you can do is redeem the existing units and invest in liquid funds. It is just a few clicks.

3

Thanks for the reply.But redeeming means fund coming back to our bank accounts, which will attract capital gain tax and then redirecting that amount to another scheme of same MFs, this facility is available with all MF houses in just a click of a button. Pls correct me if iam wrong.
If iam correct on above points I suggest Zerodha to implement this option too which will be really awesome.Reason is when markets are at peak I can park my funds in a debt fund and then at every correction I can gradually divert those amounts in part from debt funds in to equity funds.

4

Hi Sajin,

This feature is known as STP (Systematic Transfer Plan). You can gradually at regular intervals redeem units from one fund and utilize that amount in another fund. This feature is currently not available on COIN but we are working on implementing this in the future. Also, this will attract capital gains whether redeem it manually or via STP.

5

Thank you so much for the prompt reply.

6

is the faclity for switching or STP to another fund in the same AMC available in Coin now ? Please guide where if yes.

7

Switch is nothing but selling the regular plan and buying it. You can just do it manually. But be aware, there will be exit load and tax implications. STP will take some time.