I have been investing in Canara Robeco Tax Saver fund, growth option, since four years. I wish to withdraw units worth Rs 1 lakh and reinvest in the same fund. Is it mandatory to redeem and again purchase or is it possible to exercise switch option for reinvesting in the same scheme?
- Hema Verma
Investments in a tax-saving scheme have a three-year lock-in after which you can withdraw the investment anytime. Switching involves redeeming the units from one scheme and purchasing the units of the other scheme, or other plan of the same scheme. Therefore you can’t send a switch request for the same plan of a fund but yes, you can switch from one plan to another. For example you can switch from the growth plan to the dividend plan of the scheme or vice-versa. Therefore, you will have to first redeem the units of Canara Robeco Tax Saver that have completed three-year lock-in period and then again purchase the same from the fund house.