Ch.5 · NFO Process and Rules · medium
What is the 'switch-out' and 'switch-in' in the context of the SID?
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EXPLANATION
A switch involves a switch-out (redemption from the source scheme) and a switch-in (investment in the target scheme) executed simultaneously within the same AMC. The SID must disclose applicable NAVs, exit loads (from the switch-out scheme), and tax implications. Switches are treated as separate redemption and purchase transactions for tax purposes.
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