Is there any charge or fee to be paid if I switch between two funds of the same AMC?
Ranvi Nayyar, Gurgaon
A switch from one fund scheme to another is actually redeeming units in one fund scheme and then using the redeemed sum to purchase another fund scheme. Switches or redemption could attract exit load depending on the type of the fund and its exit clause. For instance, if the fund mandates exit load up to a year, it can apply in case you switch before the stipulated time period. While you make the switch, also keep in mind the taxation aspect of your investment.
