Timing for changing from one MF to another

[life2007]

Hi Friends.

Could somebody please suggest what is the correct way to exit one fund and transfer to another fund?

For example, my 3 years lock in period for SBI Tax Gain is over, There is 49K in it. I do not require the money for the next 5 years atleast. If I want to exit from this fund and say want to invest in HDFC Top 200, what factors I have to keep in mind?

Is it as simple as redeeming all 49K and transferring to new fund same day? Will there be loss or profit in this.. simple logic says there should not be.. but I am sure this is not as simple as it looks like to be.

I know some of you might suggest STP or parking in debt funds etc.. But there is lot of hassle in those things.. like debt funds you have to keep in mind about taxation of long term/short term or exit load etc. I think diversified funds have the most simple rules. Stay put for 1 year and all is yours.. no tax , no other worries..

It is not one fund I am willing to exit and put into another. I am trying to make a portfolio makeover. Over a period of time, I built in 10 funds and want to trim it to about 5. So lot of churning is involved..

I am very confused, if somebody could please help in layman simple manner, I would appreciate.

Thanks

Jeet

 

[life2007]

Hello Experts....

Some guidance please... thanks..

Jeet

 

[abdriver2000]

I am not an expert but here are my 2 cents.

I dont think you can STP from one fund house to another. I think you should redeem 10k per month and start investing the same in another fund. This way you are effectively SIPing into the new fund rather than doing a lumpsum investment.

 

[drsambu123]

Hi Friends.

Could somebody please suggest what is the correct way to exit one fund and transfer to another fund?

For example, my 3 years lock in period for SBI Tax Gain is over, There is 49K in it. I do not require the money for the next 5 years atleast. If I want to exit from this fund and say want to invest in HDFC Top 200, what factors I have to keep in mind?

Is it as simple as redeeming all 49K and transferring to new fund same day? Will there be loss or profit in this.. simple logic says there should not be.. but I am sure this is not as simple as it looks like to be.

I know some of you might suggest STP or parking in debt funds etc.. But there is lot of hassle in those things.. like debt funds you have to keep in mind about taxation of long term/short term or exit load etc. I think diversified funds have the most simple rules. Stay put for 1 year and all is yours.. no tax , no other worries..

It is not one fund I am willing to exit and put into another. I am trying to make a portfolio makeover. Over a period of time, I built in 10 funds and want to trim it to about 5. So lot of churning is involved..

I am very confused, if somebody could please help in layman simple manner, I would appreciate.

Thanks

Jeet

U can redeem and put it in one of the good performing fund of yours(i mean already having units)... U balance according to ur debt vs equity ratio.. it is not necessary that always we should put it in debt fund and transfer later....
If ur equity allocation is less than 70%(assuming ur desired portfolio is 70:30) u can go ahead with single time purchase.....
this is juz my view