Let us say you have an investment in HDFC EQUITY FUND. If the fund does not do well as when compared with other funds in HDFC like HDFC TOP 200 or HDFC GROWTH - then you have the option of switching your investment from HDFC EQUITY to say HDFC GROWTH. Always do not switch until you have held the units atleast for 1 year - otherwise short term capital gain tax has to be paid. While switching there is no entry load for the new fund. Switching can only be done in the same fund house.
Also, remember, that it is always safer to switch from the same option i.e,. if you have invested in dividend payout, and you switch to dividend reinvestment, there will be no entry load., but if you switch to growth option you will be charged entry load, because nav of each option is different.
Best of luck
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