Sunday, December 26, 2010

Exchange Privilege

The concept  'exchange privilege' refers to fund option whereby investors in the fund are able to transfer their investments from one fund to another within the same fund family e.g. as their needs, objectives, risk profile change over time. Depending on the fund and the fund family there may be rules such as x number of switches for a low or no fee (as frequent switching may be somewhat costly - both to investors and the fund provider). It is worth investigating what exchange privileges a fund provider has before investing, and it is also worth reviewing your investments, objectives, and needs as the years go on.

Synonyms: Switching, Intra-family fund switching, Fund transfer
If you have any questions, or disagree with the definition, or if you have anything to add then please do add your comments in the box below.

No comments:

Post a Comment