My mutual funds are managed by a local advisor. He switches form one fund to another within the same portfolio on his own. Are these switches chargeable? Or are there any commission per switch to the agent?
--Ganesh Kumar
He is your
mutual fund advisor. Why don't you ask him why he is selling and buying mutual funds regularly? Do not try to second guess him. You have a right to know why he is selling and buying schemes regularly. Ask him directly whether he is mindful about the taxation and loads (if any) while making these buy and sell decisions constantly.
We do not believe that getting in and out of schemes constantly is a great way to create wealth. In fact, we ask our readers to review their portfolio once or twice a year and give at least a year or two for their underperforming equity
mutual fund schemes before selling them. We really believe you should talk to your advisor and clear your doubts. If you find his response unsafisfactory, consider seeking help from a better advisor. Get references from your family and friends and talk to a few advisors before finalising one.