New Delhi, March 5 -- For investors keen to move from commission-based mutual fund advisory to fee-only advice, a common question is: How can I shift my portfolio from a mutual fund distributor (MFD) to a registered investment adviser (RIA) without disrupting investments or triggering avoidable taxes?

The shift essentially involves moving from a regular plan, where commissions are built into the expense ratio, to a direct plan, which excludes distributor commissions and typically has lower costs. In the latter, you pay a fixed fee to the RIA.

Investors broadly have two options. First, switch the regular plan to a direct plan for the same fund. This is treated as a redemption from the regular plan and a fresh investment into the direct p...