With ULIPs, you have the freedom to choose between debt funds, equity funds and balanced funds. As per the changing dynamics of the market, you can opt for fund switching. This means that within your policy, you can switch the investment from one fund to another.
Redirection, on the other hand, refers to the allocation of future premiums to a different fund1. Typically, it is at the time of policy purchase that the desired fund allocation is done. However, in case a policyholder wishes to change the initial/ original allocation, then redirection comes into play.