I have invested rs 5 lac in axis tax saver direct growth on 10th april.is it a good fund and can i tansfer to direct IDCW plan.
Ans: That's a great question! Investing Rs. 5 lakh in Axis Tax Saver Direct Growth on April 10th shows initiative. Here's a breakdown of your current fund and the pros and cons of Direct vs. Regular Mutual Fund investment plans:
Axis Tax Saver Direct Growth:
Reputable Fund House: Axis Mutual Fund is a well-established fund house.
Tax Benefits: ELSS (Equity Linked Savings Scheme) funds offer tax deductions under Section 80C.
Direct Plan: You've chosen a Direct Plan, which has a lower expense ratio (fee) compared to a Regular Plan. However, there are some trade-offs to consider:
Disadvantages of Direct Plans:
No Advisor Guidance: Direct plans don't involve a distributor or advisor. You'll need to do your own research and choose funds.
Limited Support: There might be limited hand-holding or investment guidance compared to a Regular Plan.
Portfolio Management: The responsibility of monitoring your portfolio and making adjustments falls on you.
Benefits of Regular Plans (through a Mutual Fund Distributor - MFD):
Personalized Advice: An MFD can assess your risk tolerance and goals, recommending suitable funds.
Ongoing Support: They can provide ongoing support, answer your questions, and help navigate market fluctuations.
Convenience: They handle paperwork, account opening, and transactions, saving you time.
MFD with CFP Qualification:
Expert Guidance: Consider an MFD with a Certified Financial Planner (CFP) qualification. They have advanced financial planning knowledge and can create a personalized investment plan for you.
Considering Transfer to IDCW Plan:
Exit Load: Check if Axis Tax Saver Direct Growth has an exit load (fee for exiting within a specific period).
Similar Investment Style? Ensure the IDCW plan has a similar investment style and tax benefits as your current fund.
Review Both Funds: Research both Axis Tax Saver Direct Growth and the IDCW plan to compare their performance and investment strategies.
Remember:
Long-Term View: Focus on your long-term investment goals. Equity markets can be volatile in the short term.
Diversification Matters: Consider if this ELSS fund fits with your overall asset allocation (mix of investments).
By potentially consulting an MFD-CFP, you can gain valuable guidance and build a portfolio aligned with your goals, even if you decide to stick with your Direct Plan!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
