It depends on whether the switch is within the same fund house (an intra-switch) or between different fund houses (an inter-switch).
Inter-switch (between different fund houses):
No matching restriction, but it depends on whether you already hold the switch-buy fund.
If you do not hold it: you choose the option, like a fresh buy (limited only by what the fund supports).
If you already hold it: the switch-buy follows that holding's existing option.
Intra-switch (within the same fund house):
The income distribution payout option must match, as below:
If you not holding the switch-buy fund
The new holding takes your switch-sell option, so the fund must be able to support it.
Your switch-sell option | The new switch-buy fund | Can you switch? |
Reinvest | Any fund | ✓ Yes |
Pay into Cash Account | A fund that can pay cash | ✓ Yes |
Pay into Cash Account | A reinvest-only fund | ✗ No, it cannot pay cash |
If you already hold the switch-buy fund
It keeps the option already set on it, so your switch-sell option must match.
Your switch-sell option | The held fund's current option | Can you switch? |
Reinvest | Reinvest | ✓ Yes |
Pay into Cash Account | Pay into Cash Account | ✓ Yes |
Reinvest or Pay into Cash Account | Any fund | ✓ Yes |
Reinvest | Pay into Cash Account | ✗ No, the options differ |
Pay into Cash Account | Reinvest | ✗ No, the options differ |