Can I switch from regular plan to direct plan of my ELSS ?

I am investing in growth option of Reliance Tax Saver (ELSS) and Motilal Oswal Multicap 35 Fund. I am doing these SIPs via broker Sharekhan. Now, I wish to invest directly with the AMCs, not through any broker. Can I switch these schemes from regular to direct plan? Is it possible?
--Avinash Poojari

Pankaaj Maalde, a certified financial planner, responds:

For existing investment, switching from regular to direct is possible in Motilal Oswal Multipcap 35 scheme but not in Reliance Tax Saver as it has lock in period of three years. The existing investment in ELSS or tax plans can be switched to direct plan after completion of three years.

You can however, switch your future SIPs in both the plans immediately to direct plans. But before that, you have to stop the existing SIPs and start the fresh in direct plans after the old mandate is cancelled. This takes nearly 20-30 days to cancel the earlier mandate.


It is also important to note that advise to invest in funds depending your requirements needs to be addressed which a professional distributor can do for you. The availability of direct plan does not take away the importance of advise while planning for life's goals. You need to think twice before investing in direct plans. Go direct only if you are competent to do that.