Tax implications of switching schemes

Summary: Ever wondered if switching mutual funds in the same fund house comes with a tax surprise? Let's break it down simply; you might be in for a capital gains bill even if the money stays put. Are you liable to pay taxes if you switch from one mutual fund scheme to another of the same fund house? If the investor wants to switch schemes, they are obligated to pay capital gains tax. There are two ways an investor can switch schemes

This article was originally published on June 10, 2022, and last updated on February 23, 2026.