Need A Financial Product › Forums › Trading/Investments › Is switching MF units to direct scheme taxable › Is-switching-MF-units-to-direct-scheme-taxable_REPLY
August 25, 2014 at 6:22 am
#47004
samkapoor77Keymaster
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.