A switch means to redeem one fund and purchase another fund within the same AMC.
For example, if you invested in a small-cap fund and as per market conditions you think the market will be bearish, you can switch to a debt fund. If you switch Mutual funds, it is considered a capital gain/ loss event if you click the switch button or redeem and reinvest. Since you exit, the profits will be taxable as capital gains.
Related articles:
how to place a mutual fund sip order on the new upstox app
how to place one time investments in mutual funds
how do i redeem my mutual funds investments