Switching Off Funds invites Tax?

[life2007]

Hello!

Does switching from one scheme to another (debt to equity) couple of times during a Year will be treated as redemption and invite tax or any other expense?

I intend to park a lumpsum amount in a debt fund and do a STP monthly. Does it hold any disadvantage... any loads, taxes etc?

Regards

Jeet

 

[milind]

Yes, switch is a redemption and a new purchase and could invite applicable taxes. For STP out of debt fund - chose funds with no exit load, use div-reinvest option to save on short term capital gains, no STT on debt funds

Hello!

Does switching from one scheme to another (debt to equity) couple of times during a Year will be treated as redemption and invite tax or any other expense?

I intend to park a lumpsum amount in a debt fund and do a STP monthly. Does it hold any disadvantage... any loads, taxes etc?

Regards

Jeet

 

[mfnovice]

Hi Milind,

Can you please elaborate this further? I was not able to understand it being new to this! Thank you.

 

[milind]

Hi Milind,

Can you please elaborate this further? I was not able to understand it being new to this! Thank you.

Not sure which part of what I said is not clear. Could you please specify.