1. While you can switch in one go, there are some constraints to be aware of, because a switch is a simultaneous redemption and purchase.
2. In case of equity funds purchased through a distributor, with a distributor code mentioned on the documents, the investor would have to pay a one-time applicable exit load, but If they were purchased without a code, no exit load will be deducted.
3. The applicable exit load would be as stated at the time of purchase of the fund and not as prevalent at the time of the exit.
4. STCG tax will be applicable for the equity fund units invested for less than 12 months, as switching is treated like a normal redemption.
5. The tenure of each SIP investment will be calculated separately to determine the capital gains tax.
6. Likewise, you would have to pay STT on redemption.
7. A tip - Stop the SIPs/STPs in regular plan and start them in direct plan of same scheme if you prefer to remain in it, keep redeeming the units from your regular plan in a tax-free manner and reinvesting the redeemed amount in the direct plan immediately.
8. Opportunity loss (or gain) of 10 days is insignificant in a long-term equity fund SIP investment of 10+ years - even more so when you are switching to a better-performing fund.
9. As you're switching from a non-performing fund to a better fund, the overall performance of your investment corpus would be favourable than the earlier fund, across market cycles, due to cost-averaging in the long-term of 10 years+, which would neutralize the short-term compounding impact.
2. In case of equity funds purchased through a distributor, with a distributor code mentioned on the documents, the investor would have to pay a one-time applicable exit load, but If they were purchased without a code, no exit load will be deducted.
3. The applicable exit load would be as stated at the time of purchase of the fund and not as prevalent at the time of the exit.
4. STCG tax will be applicable for the equity fund units invested for less than 12 months, as switching is treated like a normal redemption.
5. The tenure of each SIP investment will be calculated separately to determine the capital gains tax.
6. Likewise, you would have to pay STT on redemption.
7. A tip - Stop the SIPs/STPs in regular plan and start them in direct plan of same scheme if you prefer to remain in it, keep redeeming the units from your regular plan in a tax-free manner and reinvesting the redeemed amount in the direct plan immediately.
8. Opportunity loss (or gain) of 10 days is insignificant in a long-term equity fund SIP investment of 10+ years - even more so when you are switching to a better-performing fund.
9. As you're switching from a non-performing fund to a better fund, the overall performance of your investment corpus would be favourable than the earlier fund, across market cycles, due to cost-averaging in the long-term of 10 years+, which would neutralize the short-term compounding impact.