104k views
5 votes
Conversion​ privileges, offered by many mutual fund​ families, refer to the ability​ to:_________________.

A. automatically convert dividends and capital gains into more shares in the fund.
B. switch from one fund to another within the same​ family, often without paying a commission.
C. redeem mutual fund shares for cash.
D. switch from one fund to another in the same family without incurring any tax liability.

User MavHarsha
by
8.4k points

1 Answer

1 vote

Answer:

The correct answer is letter "B": switch from one fund to another within the same​ family, often without paying a commission.

Step-by-step explanation:

Conversion privileges or exchange privileges are opportunities for mutual fund investors to change from one fund to another fund in the same family. Most fund companies will charge investors a reasonably low fee or in some cases, there are no charges at all.

User Jonas Pedersen
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.