Switching

Switching refers to the process of shifting your investments from one Mutual Fund scheme to another within the same Mutual Fund. You can switch or move your investments from one scheme to another when both schemes are managed by the same AMC i.e. they belong to the same fund house. To switch funds, the investor needs to fill up a switch form specifying the amount/number of units to be switched from the source scheme and name of the destination scheme.

Switching is considered as a sale or redemption for the source scheme and a purchase for the destination scheme. Hence, one must fulfill the minimum investment amount criteria for both switch-in and switch-out schemes. There may be implications of exit-load and capital gains tax while switching since it is a sale transaction for the source scheme.

Switching is currently not possible between two schemes belonging to two different fund houses.