How to Switch Mutual Funds: Steps, Tax Rules and Exit Load (2026 Guide)

Switching a mutual fund means redeeming units of one scheme and investing in another. It is taxed as a redemption: equity funds attract 20% STCG within 12 months and 12.5% LTCG after, with ₹1.25 lakh of annual LTCG exempt. Exit load may also apply.