Dividend and Growth plan switch considered as redemption and new purchase, Whether as switch from Dividend Reinvestment to Dividend payout or vice-versa is considered as "Change in Mutual Fund Scheme".
A switch from one scheme to the other is treated as redemption from the scheme from where it is switched out & a purchase into the scheme into which it is being switched. Thus you will be liable for any 'applicable' entry load or exit load.
To switch, all you need to do is fill up a transaction slip, which can be downloaded from mutual fund website or detached from the bottom of your account statement. The same can be submitted at any of mutual fund official points of acceptance of transactions.
If other than equity mutual fund scheme and units are held for less than a year then tax will be added to your taxable income
If other than equity mutual fund scheme and units are held for more than 12 months then 10.30% without indexation or 20.60% with indexation (10%/20%+ 3% education cess)