How to switch between PPFAS schemes

From WebNotes, a public knowledge base. Last updated 17 May 2026. Reading time ~7 min. Level: Intermediate.

Key facts

Available routes	Intra-AMC switches only (PPFAS scheme to PPFAS scheme); SEBI does not permit single-transaction cross-AMC switches
NAV mechanics	Source-scheme redemption NAV applies to the sell leg; destination-scheme purchase NAV applies to the buy leg; same business day if cut-off alignment is achieved
Tax implication	Switch is treated as a redemption from source followed by a purchase in destination; the redemption leg attracts capital-gains tax
Exit load	Applies to the source scheme if units were held under the load period; computed FIFO

This guide covers switching between PPFAS Mutual Fund schemes through the PPFAS SelfInvest portal at selfinvest.ppfas.com. A switch is an intra-AMC operation that simultaneously redeems units from a source PPFAS scheme and allots units in a destination PPFAS scheme. The operation is operationally cleaner than a manual redeem-then-repurchase because both legs are processed on the same business day, eliminating the out-of-market gap. However, the tax treatment is identical to a redemption: the source leg triggers capital-gains tax.

Prerequisites

An active PPFAS SelfInvest account with the folio linked.
Units in the source scheme that are eligible for redemption (ELSS source: units beyond the three-year lock-in only).
An understanding that the switch is taxable: any unrealised gain on the source leg becomes a realised gain at the moment of switch.
For ELSS source: each installment has its own three-year lock-in. Switching ELSS units requires those units to be past the lock-in date.
For PPFCF source: exit load applies if the units to be switched are within 730 days of allotment (2 per cent within 365 days, 1 per cent for 365 to 730 days, nil beyond 730 days).
Awareness that cross-AMC switches are not permitted as a single transaction under SEBI rules. A switch from PPFCF to a non-PPFAS scheme (say, an HDFC scheme) must be done as two separate transactions: redemption from PPFCF and purchase in HDFC, with the resulting out-of-market gap and a separate NAV-realisation event.

Step-by-step procedure

Step 1: Log in to selfinvest.ppfas.com

Open selfinvest.ppfas.com or the SelfInvest mobile app. Log in with PAN, password, and OTP, or biometric authentication.

Step 2: Navigate to Switch and select source scheme

From the dashboard, tap Switch. SelfInvest lists all folios with switchable units. Each folio displays:

The folio number and source scheme.
The current units held.
For ELSS folios, the locked and unlocked split.
The current NAV and folio value.

Select the source folio and scheme.

Step 3: Select destination PPFAS scheme

SelfInvest displays the list of seven destination PPFAS schemes:

Choose the destination. Same-scheme switches (PPFCF to PPFCF in the same folio) are not meaningful and are blocked.

The destination scheme’s plan is set to Direct (the default and only available plan on SelfInvest). Choose the option:

Growth (typical default).
IDCW Payout or IDCW Reinvestment.

For ELSS as destination, the standard option is Growth, since IDCW on a three-year-lock-in scheme is operationally unusual.

Step 4: Choose amount or units to switch

Two modes:

By amount: Enter the rupee amount to switch from the source. SelfInvest computes the number of source units to be redeemed at the indicative NAV.
By units: Enter the source units to be redeemed. SelfInvest computes the indicative rupee value.

The source-leg redemption value (net of exit load) is the input value to the destination-leg purchase.

Step 5: Review exit load, tax preview, and net allotment

SelfInvest displays:

Exit load on source: Computed FIFO on the source units. For PPFCF source, 2 per cent within 365 days, 1 per cent for 365 to 730 days, nil beyond 730 days.
Capital-gains preview:
- Equity-oriented source (PPFCF, ELSS, Arbitrage, DAAF, Large Cap): Section 112A LTCG (12.5 per cent above Rs 1.25 lakh) if held over 12 months; Section 111A STCG (20 per cent) if under 12 months.
- Debt-oriented source (Liquid Fund, Conservative Hybrid): Slab-rate STCG regardless of holding period (post Finance Act 2023).
Net switch amount: Source value minus exit load.
Indicative destination unit allotment: Net switch amount divided by indicative destination NAV.

The destination leg incurs no exit load at the time of switch; exit load on the destination scheme will apply only if those newly allotted units are subsequently redeemed within the relevant load period.

Step 6: Authorise the switch

Authorise the switch:

Aadhaar OTP (sent to the Aadhaar-registered mobile number).
SelfInvest password and OTP combination.
Biometric authentication on the mobile app.

Step 7: Track both legs

The switch flows through two coordinated legs:

Source redemption: Processed at the source scheme’s cut-off NAV. For PPFCF source, the 3 p.m. cut-off applies; for Liquid Fund source, the 1:30 p.m. cut-off applies.
Destination purchase: Processed at the destination scheme’s cut-off NAV, typically on the same business day. For liquid-fund destination, the 1:30 p.m. cut-off applies; if the redemption proceeds arrive at the destination after 1:30 p.m., the destination NAV slips to the next business day.

Both legs are visible in the order book under a single switch reference number.

Step 8: Verify allotment in the destination folio

On T+1, both legs complete:

The source folio’s unit count decreases by the switched units. If the full balance is switched, the source folio shows zero units and enters AMC’s dormant-retention period.
The destination folio reflects the new units, either in the existing destination folio (if one already exists) or in a newly created destination folio.

SelfInvest emails a consolidated switch confirmation with the source units redeemed, source NAV, destination units allotted, destination NAV, exit load, and capital-gains preview.

What can go wrong

Switch attempted on ELSS units within the three-year lock-in: Each installment must be past its individual lock-in. SelfInvest blocks switch on locked units and only processes the unlocked portion.
Out-of-market gap on cross-cut-off switches: A PPFCF-to-Liquid switch where the source order is placed at 2 p.m. (after the 1:30 p.m. liquid cut-off) results in same-day PPFCF redemption NAV but next-business-day Liquid purchase NAV. The proceeds remain in transit overnight, creating a one-day out-of-market gap. To avoid: place the switch before the liquid 1:30 p.m. cut-off.
Exit-load surprise on recent PPFCF inflows: A switch within 365 days of an inflow attracts the 2 per cent PPFCF exit load. The exit load is computed on the redemption value, not the gain. This can be material for short-tenure SIP installments switched soon after allotment.
Tax-event surprise: A switch from PPFCF to Conservative Hybrid is fundamentally a sell-and-buy of two distinct schemes. Long-held PPFCF positions with substantial unrealised LTCG trigger Section 112A LTCG even though the investor’s intent was just rebalancing. Stagger switches across financial years to use the Rs 1.25 lakh annual LTCG exemption each year.
Regular-plan to direct-plan switch: A switch from PPFCF Regular to PPFCF Direct is treated as a redemption from Regular and a purchase in Direct. See how to switch from PPFAS regular plan to direct plan for the dedicated flow.
PAN-Aadhaar not linked: An inoperative PAN blocks all switch transactions.
Nominee or opt-out not on record on source or destination folio: Both folios must be SEBI-nominee-compliant for the switch to process.
Cross-AMC switch attempted: SEBI does not permit single-transaction switches across AMCs. SelfInvest only shows PPFAS schemes as destination. For cross-AMC operations, redeem from PPFAS first, wait for credit, then place a fresh purchase at the destination AMC, accepting the out-of-market gap.
Switch into ELSS for tax-saving in the current FY: The destination-allotment date determines 80C eligibility for the FY. A switch processed at a destination NAV of 1 April effectively counts towards the next FY’s 80C, not the current FY. Plan timing accordingly.

Common switch use cases

Source	Destination	Typical reason
PPFCF	Liquid Fund	Reduce equity exposure ahead of a planned cash outflow or market-uncertainty hedge
Liquid Fund	PPFCF	Deploy parked surplus into equity once buying conditions confirmed
PPFCF	Conservative Hybrid	Shift to a balanced allocation closer to a goal-completion horizon
PPFCF	DAAF	Move to a dynamic asset-allocation framework as risk preferences evolve
ELSS Tax Saver	Flexi Cap	Post three-year lock-in, consolidate ELSS into the flagship for unified equity management
Large Cap	PPFCF	Move to the more diversified flexi-cap mandate (or vice versa, depending on conviction)
Liquid Fund	Arbitrage Fund	Improve post-tax return on cash via the equity-oriented arbitrage tax treatment (subject to Finance-Act-2024 framework)

How to redeem PPFAS units via SelfInvest covers the alternative full-exit path
How to set up STP from PPFCF to Liquid Fund covers the systematic-transfer alternative for gradual switches
How to set up SWP on a PPFAS scheme covers systematic withdrawals
How to switch from PPFAS regular plan to direct plan covers the regular-to-direct switch
The reference article on the PPFAS SelfInvest portal covers the full portal functionality

External references

References

PPFAS Mutual Fund, SelfInvest portal at selfinvest.ppfas.com, switch flow (accessed May 2026).
PPFAS Scheme Information Documents for the seven active schemes, current versions at amc.ppfas.com.
SEBI Circular on uniform applicability of NAV, SEBI/HO/IMD/DF2/CIR/P/2020/175, dated 17 September 2020 (effective 1 February 2021).
SEBI Master Circular for Mutual Funds, 22 May 2024.
SEBI (Mutual Funds) Regulations, 1996.
Finance Act, 2024 (Section 112A LTCG at 12.5%, Section 111A STCG at 20%, Rs 1.25 lakh LTCG exemption).
Finance Act, 2023 (debt-MF taxation amendment).
SEBI nominee-registration circular, effective April 2023.
AMFI T+1 redemption framework circular, effective January 2023.
PPFAS investor desk FAQ at amc.ppfas.com/faqs/.

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 17 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.