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:
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.

Related Terms:
Back-End Load
Growth Fund
Load Fund
Mutual Fund
No-Load Fund
Switching

• Deferred Acquisition Costs (DAC)
• Deferred Acquisition Costs (DAC)
• Deferred Annuity
• Deferred Charge
• Deferred Income Tax
• Deferred Interest
• Deferred Interest Bond
• Deferred Long-Term Liability Charges
• Deferred Payment Option
• Deferred Profit Sharing Plan (DPSP)
• Deferred Profit Sharing Plan (DPSP)
• Deferred Revenue
• Deferred Share
• Deferred Tax Asset
• Deferred Tax Liability
• Deficiency Agreement
• Deficiency Letter
• Deficit
• Deficit Spending Unit
• Defined-Benefit Plan
• Defined-Contribution Plan
• Deflation
• Defunct
• Degearing
• Degree Of Combined Leverage (DCL)