What will switching cost in tax?

A switch is a sale. Tax and exit load come out before a rupee reaches the new fund. See the bill, how long the better fund needs to earn it back, and whether waiting a few months makes it cheaper.

Current value of the holding What you paid for it Months held (oldest units) Exit load, % (0 if past the load period) Long-term gains already booked this year How much better the new fund should do, % a year

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Gain
Kind
Tax including cess
Exit load

Equity funds: gains on units held twelve months or less are taxed at 20%; longer than that at 12.5% on the part above ₹1.25 lakh a year, plus 4% cess. Surcharge, if any, is not included. SIP units have different purchase dates, so an actual switch is a mix of both; this treats the whole holding at the age you enter. Not tax advice.