Switching
In mutual funds, the movement of assets from one fund to another. This is usually done within a family of funds, but can be done between different fund families. Within a no load family, there usually is no charge or a nominal transaction fee. This is also usually true for a load family as long as the fund being switched into has the same sales charge (or less) as the one that the investor already owns. When switching to a mutual fund that belongs to a different family of funds, if the new fund is a no load–there is no charge, and if the new fund is a load fund–it is sales charge of the new fund. An investor will switch mutual funds when their investment objectives change or because of market conditions.
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