Switching of funds means moving the money from an investment scheme to another investment scheme. Investor can switch between two different schemes, that is money is taken out of fund A (a sell order) and invested in fund B (a purchase order). This way a switch, order results in two transactions a sale and a purchase. A switch can be done between two funds of the same Company or between funds from two different Companies Switch allows the investor to move to a fund which gives better returns.