Tuesday, December 28, 2010

Switching

Switching refers to when an investor switches or transfers their investment from one fund to another fund with the same provider. In other words changing funds within a fund group or fund family. Some providers may charge a nominal fee for switching. It may be appropriate for investors to switch funds as their goals and life stage changes e.g. transitioning from a growth fund to an income fund as the investor nears retirement.

Synonyms: Switch, Transfer

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