I'm not so sure I would be too happy about either of the two options being presented.
Presumably, you invested in these funds with a medium to long term outlook in mind and there was some initial charge made on your investment. Simply being told that you can take the cash value after less than a year is inappropriate.
If you invested €10,000, and the fund is now worth €9,000, then there would be no tax liability. However, if you reinvested this €9,000 in another fund and it increased in value to €10,000 then you would have tax to pay on the gain of €1,000.
Staying in the same fund would not incur tax until such time as your existing fund exceeded the €10,000.
Unless, of course, the tax structure of the Danske Funds is different.?