The best# three and the worst three schemes over the past three years, in different...
About three years ago, I had given a mandate to the asset management companies (AMCs) whose units I had invested in, to remove the broker code and make it ‘direct’, as I was no longer in touch with the broker. Direct plans were introduced last year. As my scheme was already under direct, it should have automatically gone into the ‘direct’ plan. To my surprise, I found that I was put under regular plan. It is only natural I would prefer the direct plan.
MLF’s Reply: Direct plans were launched as separate plans (with a different ISIN code) in January 2013 and were available only for new investments. Therefore, investments made prior to January 2013, either direct or through a distributor, would continue as regular plan, unless a request was made to switch. For existing investments, to opt for the direct plan, you would have to switch from the regular plan to the direct plan. The benefit given to existing direct investors is that no exit-load would be applicable if they switched from regular plan to direct plan.
However, if you were investing via SIP without a broker code, investments through this route after January 2013 should have been made under the direct plan. If these investments were made under a regular plan, you could complain to your AMC to get the same rectified with effect from January 2013.