Bengaluru based investment platform Piggy has gone live with a ‘smart switch’ feature on its platform to allow investors to move from the regular mutual funds to direct mutual funds on the platform, free of cost.

The company said that by making this shift it could help investors save up to 1.5% of commission that they pay the regular platform as service charge.

Explaining the process of the switch, Nikhil Mantha, co-founder of Piggy said that it is a very tedious process to move from regular funds to direct funds, since it requires one to sell all their investments first and then move to direct.

With the smart switch product, Piggy has developed an algorithm where users can move their investments seamlessly and prepare a smart schedule in order to optimise returns.

“An investor can choose to switch his investment to direct plans without being liable to pay exit loads, this optimizes one’s tax savings. And the whole process is completely automated and done at a click of a button,” said Mantha.

Smart Switch also considers various other factors to ensure the user is not liable to pay an exit load or break the lock-in the period of his ELSS investments.