Switching of funds means moving the investment from one scheme to another scheme. Investor can switch between two different schemes, plans, and option i.e., money is taken out of scheme / plan / option A (redemption) and invested in scheme / plan / option B (purchase). This way a switch, results in two transactions a purchase & redemption.
Types of switches
- Full switch
- Partial switch
Minimum amount
For switch in scheme, minimum amount of investment of the in scheme is to be considered. This is applicable if the investor is investing for the first time in the switch in scheme.
TATS and Exit Load
Switch Type | TAT | Transaction | Exit load |
Growth to IDCW- Same Scheme | Same Day | Switch | No exit load |
IDCW payout to IDCW reinvestment- Same scheme | Same Day | NCT | No exit load |
One scheme to another | Redemption TAT | Switch | Exit load applicable as per scheme norms |
Direct to Regular- same scheme | Same Day | Switch | No exit load |
Regular to Direct- same scheme | Same Day | Switch | Exit load applicable as per scheme norms |
IDCW payout to IDCW sweep- Same scheme | Same Day | NCT | No exit load |
Cutoffs and NAV
Inter scheme Switch Transaction | |||
Transaction Type | Transaction received before cut-off timing | Funds moved to target scheme before cut-off timing | Applicable NAV |
Switch out | Yes | As per the payout TAT of switch out scheme | Same Business Day for switch out transaction. For liquid and overnight closing NAV of the day immediately preceding the next business day shall be applicable |
Switch in | N/A | Yes | Inter scheme (Scheme A to Scheme B) Payout TAT of out scheme. Intra scheme (Growth to IDCW)- Same Business Day |
Dos and Don’ts
- Scheme minimum amount criteria to be fulfilled for both in and out scheme.
- Check cutoff time before submitting request.