A Mutual Fund Switch is the process of transferring your investment from one scheme to another within the same mutual fund house.

Example:
Switching from ABC Equity Fund to ABC Debt Fund under the same AMC.

Instead of redeeming and then investing separately, a switch does both in one single request.

How is a Switch Processed?

A switch happens in two legs:

1. Redemption from the existing scheme
2. Purchase into the new scheme

The redemption amount (after applicable charges, if any) is used to purchase units in the new scheme.

The new units are allotted based on the applicable NAV as per cut-off timing.

What is the Cut-off Time?

The standard mutual fund cut-off time is:

3:00 PM on business days

• If the switch request is submitted before 3:00 PM, the same day’s applicable NAV is considered (subject to scheme type).
• If submitted after 3:00 PM, the request is processed on the next business day.

(For Liquid/Overnight funds, cut-off timing may vary as per regulations.)

 How Many Days Will It Take?

Typically:

• Equity to Equity / Debt: 2–3 business days
• Debt to Equity: 2–3 business days
• Liquid funds: Usually 1–2 business days

Processing depends on:

• Scheme type
• Cut-off timing
• Holidays

Will Exit Load or Tax Apply?

Yes, depending on conditions:

Exit Load

• If you switch before the minimum holding period, exit load may apply.
• Exit load is deducted from redemption proceeds.

 Capital Gains Tax

A switch is treated as a redemption for tax purposes.

• Equity Funds
  • STCG (within 1 year): 15%
  • LTCG (after 1 year): 10% (above ₹1 lakh gain)
• Debt Funds
  • Taxed as per applicable capital gains rules.

Clients are advised to consult their tax advisor if required.

How Do Holidays Affect Processing?

• Switch requests are processed only on mutual fund business days.
• If submitted on:
  • Saturday / Sunday
  • Market holiday
  • Settlement holiday

It will be processed on the next business day.

This may increase the processing timeline.

How to Track Switch Status in Navia App?

Clients can track status through:

Navia App → Mutual Funds → Order  → Filter  → Switch

Status indicators:

• Oder In Progress
• Successful Orders
• Unsuccessful Orders

If the amount is debited but units are not yet visible, it will reflect in the holdings upon completion of the applicable settlement cycle.

For any delay beyond expected timelines, create a ticket from the option below  with:

• Folio number
• Scheme name
• Date of switch request