Final answer:
Mutual fund companies typically charge an exchange fee to investors for exchanging units of one fund for another within the same fund family or company.
Step-by-step explanation:
A mutual fund company typically charges an exchange fee to investors who want to exchange units of one fund for another within the same fund family or company. This fee is charged to cover the administrative and transaction costs associated with the exchange process.
For example, let's say an investor has units of Fund A and wants to exchange them for units of Fund B within the same mutual fund company. The investor would be required to pay the exchange fee as specified by the mutual fund company.
It's important to note that the exchange fee may vary from one mutual fund company to another and can also depend on the specific funds being exchanged.