fund switching

(redirected from Switching Funds)

Fund switching

Moving money within a mutual fund family from one mutual fund to another.

Fund Switching

The practice of selling shares in a mutual fund and using the proceeds to buy shares in another mutual fund. An investor does this when economic conditions or his/her investment goals have changed. Because of the fees (known as loads) associated with buying and selling mutual funds, fund switching can be expensive unless one is switching within a fund family or between no-load funds.

fund switching

An investment activity in which shares in one mutual fund are sold and the proceeds from the sale are reinvested in another mutual fund. Fund switching results from an investor's changed perception of investment opportunities. For example, an individual may become bearish and switch money from a growth fund to a money market fund. Because of the high sales charges involved in purchasing some funds, fund switching is practical only if no-load funds are used or if the investor switches within a family of funds.
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No tax is levied on switching funds from equity to debt or vice- versa.
Usually, there are fees associated with switching funds, but we feel that this may be discouraging to some.
CLA deputy president Henry Robinson said: "Farmers in England will be severely disadvantaged if modulation is at 15% - the full amount possible - which is not in alignment with our European neighbours, who may even benefit by switching funds from rural development to direct payments.
Switching funds will not generate a tax charge, but there could be a fee for switching.
Switching funds to public health, trying to cut the number of people requiring treatment in the first place, sounds like an attractive idea.
Clearly when switching funds there are costs involved, so these should also form part of the investor's decision-making process," Dowding said.
For switching funds on the Platform, there is normally a charge of 0.
They have spiked in recent weeks amid fears over global economic uncertainty, with investors switching funds from currencies and equities to commodities such as oil.
These are buyers in their 30s and 40s who are using buy-to-let as their new pension by switching funds from traditional stock market-linked schemes into property.
The plan is that risks are reduced as the maturity date approaches, by switching funds from shares to bonds and cash.
There are some reservations about switching funds from production support to agri-environment measures.
But independent PEP brokers warn consumers against making any hasty decisions about switching funds on the back of a