How can I move from one fund to another company?

A mutual fund is a professionally managed company that collects money from many investors and invests it in securities such as stocks, bonds and short-term debt, equity or bond funds and money market funds.

Mutual funds are a good investment for investors looking to diversify their portfolio. Instead of betting everything on one company or sector, a mutual fund invests in different stocks to try to minimize portfolio risk.

The term is typically used in the US, Canada and India, while similar structures around the world include the SICAV in Europe and the open-ended investment firm in the UK.

How can I move from one fund to another company?

Investors switch their investment from one open scheme to another within the same house of funds for better financial planning. To switch within the same fund house, fill out a switching form specifying the amount/n. of units to change from the source schema and the name of the target schema. The minimum investment amount criteria must be met for both switch-in and switch-out schemes. There may be implications for output-load and capital gains tax during the switch. For a passage within the same house as the fund there is no concern about the settlement period since the money does not leave the fund house.

When you move from one scheme in Mutual Fund
A to another scheme in Mutual Fund B, it’s like selling your investments in one fund and reinvesting in another. You can request reimbursement from the first mutual fund and wait to receive the proceeds in your bank account. Exit loads and tax implications must be considered when redeeming your investments. Fill out the Common Fund application form in which you wish to reinvest the proceeds once you have received the credits from the first fund. You can also ask fund advisors for help in choosing the right funds for a switch.

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