Exchange Privilege

Dictionary Says

Definition of 'Exchange Privilege'

The opportunity given to mutual fund shareholders to exchange their investment in a fund for another within the same fund family at no additional cost. This privilege allows investors to switch funds when market conditions change.
Investopedia Says

Investopedia explains 'Exchange Privilege'

For example, you might want to be in an aggressive growth fund when the market is going up, but when the markets start heading downward, you may switch to a bond fund.

There is usually a limit to how many times an investor can switch funds within a year.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Mutual Fund

    An investment ...
  2. Load Fund

    A mutual fund ...
  3. Switching

    1. In mutual ...
  4. Growth Fund

    A diversified ...
  5. No-Load Fund

    A mutual fund in ...
  6. Back-End Load

    A fee (sales ...
  7. Fund Of Funds

    A mutual fund ...
  8. Paper Trade

    Simulated ...
  9. Portfolio

    A grouping of ...
  10. Financial Intermediary

    An entity that ...

Articles Of Interest

  1. Mutual Fund Basics Tutorial

    Learn about the basics - and the pitfalls - of investing in mutual funds.
  2. Mutual Fund Tune-Up Delivers High-Powered Performance

    Rebalancing your portfolio will protect you from risk and ensure that your investments are performing at their best.
  3. When To Sell A Mutual Fund

    Unhappy with your mutual fund's returns and thinking of investing elsewhere? Read this article first.
  4. Market Cycles: The Key To Maximum Returns

    You need to understand the various phases of the market cycle to avoid bubbles and make the best investments.
  5. 12b-1: Understanding Mutual Fund Fees

    Many mutual funds charge investors a 12b-1 fee to pay for marketing and promotion expenses.
  6. 5 Common Misconceptions About ETFs

    The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here.
  7. Using ETFs To Build A Cost-Effective Portfolio

    ETFs are a viable alternative to mutual funds, but before you invest, there are a few things you should know.
  8. 5 Things To Know About Asset Allocation

    Overwhelmed by investment options? Learn how to create an asset allocation strategy that works for you.
  9. 4 Strategies For Managing A Portfolio Of Mutual Funds

    Discover some common strategies to devise a plan and maintain your holdings to reflect it.
  10. Active Management: Is It Working For You?

    There are guidelines to be followed when comparing an actively-managed investment strategy with a benchmark.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center