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 Β Β 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 | Β 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 Donβts
- Scheme minimum amount criteria to be fulfilled for both in and out scheme.
- Check cutoff time before submitting request.