ICICI PRU $ HDFC MF Hit the Market with “SWITCH PLAN” – UTI to Enter
Labile - Mutual Fund
To give the investors the best of worlds, mutual fund houses began offering flexible asset allocation plans that allow unit holders to keep increasing their exposure to equities while starting off in a debt plan.
Also known as “switch Options” in distributors’ parlance, these plan help investors to move money steadily into equity finds.
Here are some key Features of Switch Options -
- Switch plans enjoy flexibility to invest entire net assets in equity or debt instruments after the swap period.
- In certain funds, investors decide the quantum of fund that is released periodically into equity assets.
- There are no separate load structures for switches done in these schemes.
- The transfer of amounts will attract no exit load.
Investors can opt for a 52-week or 12 month STP and benefit from the changing macro environment. At the end of the switch period, the entire fund would be invested in equities.
