Switching investments under micro investments

You do not need to quote PAN if you stay invested in the same scheme even if the market value exceeds Rs 50000.

I have a query regarding exemption of PAN in investment up to Rs 50000 per year per mutual fund that SEBI has allowed from last year.

Suppose I have invested Rs. 48000 in an equity scheme eight months back and now the value has appreciated to Rs 55,000. Is it allowed to switch the funds to a liquid or debt fund fully or partially because now the value has appreciated above Rs.50000?

Secondly, if the value is below Rs 50000, is it allowed to switch the fund from one scheme to other scheme with the same micro KYC?

Anupam Saxena

Hi Anupam,

You can switch Rs 2000 to another scheme. If you switch more than Rs 2000 your invested amount will exceed Rs 50000 and hence PAN will be mandatory. You are not required to quote PAN if you wish to switch from one scheme to another as long as the invested value does not exceed Rs 50000.

Switch from one scheme to another is treated as fresh investment in the new or target scheme. You do not need to quote PAN if you stay invested in the same scheme even if the market value exceeds Rs 50000. PAN is exempted (up to investment of Rs 50,000 per person per mutual fund per year) on the ‘invested amount’ irrespective of the current ‘market value’.

AMCs monitor your investments through a unique ID number mentioned on the KYC acknowledgment form.