What should investors consider while switching from Dividend to Growth option?

Imagine you’ve booked an 8 am flight from Bengaluru to Chennai on FlyIndia Airlines. You realise that the wrong flight was booked and needs rescheduling. What kind of charges do you think FlyIndia will charge you? You will have to pay a penalty for changing your mind even though it is the same airline, same date of travel, same destination and the same passenger!

In case of Mutual Fund investments,switching your investments from one option to another within the same scheme is considered as a sale (redemption). Hence, the switch will attract exit load and capital gains tax depending on how long you had invested.

The two options within the same scheme have different NAVs and operate differently.

• Growth option reinvests profits made by the