Inter-scheme switch in mutual funds

Tue, 12 May 2026 00:00:00 +0000

An inter-scheme switch is a transaction in which an investor moves units from one mutual fund scheme to another scheme offered by the same AMC (asset management company). Both the source and destination schemes are managed by the same fund house and administered by the same Registrar and Transfer Agent (RTA) . The transaction is processed as a simultaneous redemption from the source scheme and subscription to the destination scheme.

Inter-scheme switches are also referred to as intra-AMC switches. They are the most operationally straightforward type of switch because the RTA maintains records for both schemes and can execute both legs in a single internal transaction without involving external bank transfers.

Switch in mutual funds (intra-AMC, inter-scheme, inter-AMC)

Tue, 12 May 2026 00:00:00 +0000

A switch in the context of Indian mutual funds is a transaction in which an investor redeems units from one scheme and simultaneously uses the proceeds to subscribe to units of another scheme, without the money passing through the investor’s bank account as an intermediate step. The two legs, redemption from the source scheme and subscription into the destination scheme, are treated as a single instruction by the AMC or its Registrar and Transfer Agent (RTA) , though they are legally and fiscally two separate transactions.

Inter-Scheme Switch on WebNotes

Inter-scheme switch in mutual funds

Switch in mutual funds (intra-AMC, inter-scheme, inter-AMC)