Does one have to pay tax on switching between two equity funds?
Yes, one has to pay a capital gains tax of 15 per cent if the switch happens in less than a year. This is also applicable if the switch is between two schemes of the same fund house. A switch from one scheme to the other is deemed a withdrawal.
Will this switch attract exit load as well?
Yes, exit load is applicable on switching. However, most firms don't impose any, if you switch from one plan to the other of the same fund house, even if the switch is happening within the exit load applicability period (example, switch from a dividend plan to a dividend reinvestment plan).
