Question

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.

Answer 1

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.