Final answer:
Switching between two different mutual funds in the same fund family may be subject to a fee and may have tax implications.
Step-by-step explanation:
Switching between two different mutual funds in the same fund family may be subject to a fee. While some mutual fund families may offer free exchanges within their family of funds, others may charge a fee for switching. It is important for investors to read the prospectus or consult with the mutual fund company to understand the specific fees and policies regarding switching funds within the same family.
In addition to potential fees, switching between mutual funds in the same fund family may have tax implications. Depending on the type of investment account (e.g., taxable or tax-advantaged) and the specific tax laws of the country, there may be tax consequences when selling one mutual fund and purchasing another within the same family.
Therefore, the correct statement is option B: Switching between two different mutual funds in the same fund family may be subject to a fee.