Best Method to Switch Mutual Funds from One Company to Another

[ayush19]

Hi Team,

Currently, I am invested in Axis Small Cap Direct Fund. However, I have observed that several other small-cap funds are performing better than the Axis Small Cap Direct Fund.

I am seeking to understand the best method to switch my mutual fund investment from one company to another.

Thanks
Ayush

 

[rohit_20085]

Hi Team,

Currently, I am invested in Axis Small Cap Direct Fund. However, I have observed that several other small-cap funds are performing better than the Axis Small Cap Direct Fund.

I am seeking to understand the best method to switch my mutual fund investment from one company to another.

Thanks
Ayush

There's no other method than redeeming the existing fund & investing in new fund. STP is not an option as for STP, the fundhouse should not change. However, you can redeem by harvesting capital gains upto the allowed limit i.e. by redeeming the units after one year of investment to the limit, when LTCG doesn't exceed 1.25 lakhs. In this way, there'll be no tax liability