Need A Financial Product Forums Trading/Investments Is switching MF units to direct scheme taxable

This topic contains 1 reply, has 2 voices, and was last updated by  Navin Singh 2 years, 4 months ago.

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    Navin Singh

    8 months ago, I had purchased HDFC Top 200 through online. I want to switch the units to Direct Scheme. Do I need to pay tax on this switching?


    Mahesh Mange

    I will suggest you to wait for another 4 months. Switching in your case will be considered as redemption and new purchase and accordingly whatever profit you will book will attract short term capital gain tax. Switching at this stage will also require you to pay exit load usually 1%. As HDFC Top 200 is an equity fund, after completion of one year, exit load and LTCG will not be applicable.

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