Investments into UT funds are usually for the long term. Most would find it not worthwhile in the shorter term as it is a roll of the dice to get the timing right to enter and exit. More so when the invested money is out of EPF.

The money out of EPF has an opportunity cost to it. You are forgoing its stable returns which have hardly any investment risk.

If you think the related markets are at their peak and would like to take some of the funds off the table, then it would be better to switch instead of selling.

In switching, it might cost you a switching fee. (Which is RM25 in Public Mutual.) While there is no exit fee, if you choose to re-enter again, it will cost you another round of service charges. (Which is 3% plus GST in Public Mutual.)

The only instance when there is no difference btw switching or selling is when there is no switching fee and zero service charge.

If you can't think of any better equity fund to switch into, then switch into either a bond fund or a money-market fund.

I would prefer a money-market fund; as there is no switching fee if I have held the equity fund for more than 90 days. Hence it would only cost me a one-time fee when I switch out of the money-market fund later back to the same or another equity fund.

With a bond fund, the switching fee will be incurred twice.

Since the aim of "switching" some money out of EPF - which is also an unit trust fund itself - is for higher returns than what you can get in EPF, having the money in bond and money-market funds for too long will defeat this objective of getting higher returns and it will be an opportunity cost instead.

So don't park the money in the bond or money-market funds too long.