What does it mean to exit a mutual fund and switch a fund? Mrin Agarwal explains

economictimes.indiatimes.com:

Mrin Agarwal, Founder Director, Finsafe, says “all investors who think that I should do profit booking or who feel that my fund has not done well or who feel that I can exit right now and re-enter, please just remain invested, especially those who have just entered the market a year back. It is just too early for you to exit. And remember, this is how equity markets work. In one year, you will make a great return. Possibly, next year, you may not make a great return and that is why we always say that the average return that you are going to make could be in the range of, let us say, about 10% to 12%. You should remember that this 30-40% is not going to happen year on year. ”

It is very important to revamp and reallocate portfolio when you see a disbalance as far as diversification is concerned. A lot of time investors think of exiting a fund or maybe switching a fund. What does it mean to exit a mutual fund and switch a fund?
Mrin Agarwal: Exiting a fund means that you are exiting the entire holdings from that particular fund and probably putting it into your bank account.

The money is going to come into your bank account. But when you switch from one fund to the other fund, it means that you are exiting one particular fund and you are moving the same amount, whatever the redemption amount is, into another fund. So that is the difference.