Auto Switch Facility during LIC Mutual Fund NFO: LIC Mutual Fund has announced the launch of a new facility of auto switch facility during its new fund offer (NFO). This new initiative will facilitate those investing in the NFO of any new scheme of LIC Mutual Fund to apply. This facility will be available to switch from LIC MF Overnight Fund to the newly launched scheme. Let us know how this facility will work and how investors will benefit from it.
What is auto switch facility?
Auto Switch Facility is a special facility under which investors can automatically switch their investment made in LIC MF Overnight Fund to the new scheme on the last date of the NFO.
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What is the benefit of auto switch facility
Simplicity and Convenience: Under this facility, investors can switch their funds automatically during the NFO. This means that investors will not need to do the switching manually separately.
Timely Investment:On the last day of subscription to the NFO of LIC’s new scheme, investors’ money will automatically be switched to the new scheme, which will give investors the benefit of investing in the market at the right time.
Seamless transition to the new scheme: Switching from LIC MF Overnight Fund to the new scheme will allow the investor to transition smoothly to the new scheme without any hindrance.
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How to get the benefit of auto switch facility
To avail this facility, investors need to comply with certain conditions:
Facility will be available on growth option: This facility will be applicable only for the growth option, be it a regular plan or a direct plan.
Minimum Application Amount:For switching, it is necessary to fulfill the condition of minimum application amount.
Switching on FIFO Basis:If the investor has already invested in the scheme and they make additional investment under this facility, switching will be done on First In, First Out (FIFO) basis.
Taxes and Exit Load:If tax and exit load is applicable on switching, it will have to be paid.
Non-Demat Mode:This facility will be available only for units held in non-demat mode.
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Who can avail this benefit?
This facility is available for both new and existing investors. If you are planning to invest in the NFO of any new scheme of LIC Mutual Fund, then you can make your investment process easier and better by taking advantage of this facility.
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Keep these things in mind while investing
– Choosing the right plan: The benefit of auto switch facility will be available only if you invest in LIC MF Overnight Fund and later switch to the new scheme. Therefore, it is necessary to understand the terms and conditions of both the schemes before investing.
Follow the guidelines of the fund house:Investors need to fill up the auto switch facility form correctly and follow the guidelines given on the fund house’s website for the same.
The auto switch facility introduced during LIC MF NFO is a good facility for investors. This will make it easier for them to invest in a new scheme. But the decision to invest in any mutual fund scheme should be taken only after getting complete information about that scheme. There is usually market risk associated with investing in a mutual fund scheme. Therefore, one should choose the right scheme according to one’s risk taking capacity.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment in any scheme. Take any investment decision only after getting complete information and taking the advice of your investment advisor.)
