Switching in mutual funds
Mutual funds allow investors to switch money from one scheme to another within a fund house using transaction slips.
The transaction slip has to be signed according to the holding pattern of the mutual fund folio and submitted to the investor service centre.
Investors have to indicate the number of units/amount to be switched. The transaction is treated as redemption from the source scheme and purchase in the destination scheme.
The switch is carried out on the basis of the NAV and depends on the day and time of transaction. It does not include specific costs. Taxes are applicable on the type of the source scheme.
After the switch, investors receive an account statement showing the transaction and the number of units redeemed and purchased.
Switches may not be allowed across all schemes. Investors should check availability of this facility for both source and destination schemes.
Source: Economic Times
Visitors who read this article also read:
|
Was this article useful? Subscribe to our newsletter to get daily updates in your email for free. |
|
|
Incoming search terms:
Related posts:
