Ways to invest and withdraw
What is a switch?
A switch moves your money from one scheme, plan or option to another of the same fund house in one instruction.
How it works
For tax and exit loads, a switch is treated as a redemption from the first scheme and a purchase in the second. Gains on the units switched out are taxed, and stamp duty applies to the units bought.
Example
Switching ₹2 lakh from a liquid fund to a large cap fund of the same fund house sells ₹2 lakh of liquid fund units and buys large cap units with the proceeds.
Keep in mind
- Check the exit load and tax before switching.
- You cannot switch between fund houses; that needs a redemption and a new purchase.
Questions people ask
Is a switch taxable?
Yes. It counts as selling the units you switch out of.
How long does a switch take?
It is usually processed at the applicable NAVs within a few business days, depending on the schemes involved.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.