Exchange privilege

A mutual fund shareholder's right to switch from one fund to another within one fund family, usually at no additional charge.

Exchange Privilege

The right of a shareholder in a mutual fund to sell his/her shares and buy shares in another mutual fund within the same fund family, generally with no additional load (or sales fee). Different mutual funds within a fund family have different investment goals and/or strategies. However, because the same company manages the whole group, individual investors may generally exercise the exchange privilege to move money from one fund to another without extra commissions or fees, or with only a nominal charge. The exchange privilege allows investors to be flexible in their own investment goals according to their particular needs at a given time.

exchange privilege

The right to exchange shares in one mutual fund for shares in another fund managed by the same firm. The rate at which shares are exchanged is determined by differences in relative values. There is usually a nominal charge for each transfer. This privilege is designed to allow investors to move their money among funds without incurring additional sales fees as their investment goals change. Also called conversion privilege.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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References in periodicals archive

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On top of the reduced rates and bonus savings, hotels will offer extra values like resort credits, resort exchange privileges, kids stay free offers, golf discounts and more.

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A seven-night package during these dates starts at USD1,399.99 per person, based on double occupancy, and includes roundtrip, non-stop Apple-exclusive vacation flight from Chicago O'Hare to Puerto Vallarta, Mexico; all-inclusive accommodations at the resort; roundtrip airport/hotel transfers; Bears fans private welcome party and autograph session; special group activities and surprises with the Bears hosts; all meals, snacks and unlimited domestic and select imported drinks including in-room mini bar and liquor dispenser; free Wi-Fi in the lobby area; exchange privileges with neighboring Riu Vallarta and Riu Jalisco; and daily entertainment and non-motorized water sports.

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