Hello Sreekanth,
I invested thru SIP in UTI MNC Fund (Divsrfd Eqty) 10k x 10months (August2015 to May2016), but I see that the fund is not doing great.
Is it advisable to withdraw money from this and invest in SBI Small&Mid Cap ?
How can I do this ? Withdraw and then invest in SBI or can it be switched between UTI and SBI?
Thr will be no taxation and exit load, is this understanding correct?.
Many Thanks
Animesh
1 Answers
Dear Animesh,
In MF parlance, a switch is when you transfer your money from one scheme to another within the same fund house.
In this case, you just need to redeem the units from UTI fund and re-invest in the SBI fund.
As you have been holding the units for more than 12 months, no tax on Long term capital gains (if any) will be levied.
Exit load on UTI MNC fund is not applicable if units are redeemed after 364 days, from the date of purchase.
Do note that you are planing to switch from a multicap fund to mid/small cap fund, which has higher risk profile when compared to diversified fund.
Related articles :
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
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