Fund Switching

Categories: Mutual Funds,

mutual fund investment practice in which money is taken out of one mutual fund and put into another in order to achieve maximum returns. Fund switching would take place over time as economic or market trends, or the investor's needs, change. Sometimes this switch is within the same fund family (having the same investment objectives), the other times it is among different families (having very different objectives). Commonly, the fund managers don't charge a fee for switching within the same family of funds, although most broker/dealers do.