A switch from one fund (switch-out) to another fund (switch-in) is actually a combination of two transactions:
- Redemption of units in the scheme from where it is switched out
- Fresh purchase of units in the scheme into which it is being switched
Switch orders work on a slower time-table vs normal purchases. If your switch amount is > Rs 200,000, the Mutual Fund Company needs to sell your units, realize the cash from the underlying sale and then purchase fresh units for you in the new scheme.
Therefore, for switch amounts > Rs 200,000, you will see a difference in NAV dates for the switch-in and switch-out legs. This is because your instructions in Liquid, Debt and Equity funds are processed separately by the Mutual Fund Companies based on when funds are available to them.
For your convenience, Clearfunds will send you the confirmation for the entire switch transactions only when both legs are confirmed by the Mutual Fund Company. It therefore takes at least 3 working days to reflect both legs of your switch investment on your Clearfunds dashboard.
Remember, you need to place your switch instruction before 1:00PM on a working day so we can submit it to the AMC for that day's processing. If submitted after 1PM, your instruction will be processed on the next working day.