moving assets from one mutual fund to another, either within a family of funds or between different fund families.
Mutual funds: moving assets from one mutual fund to another, either within a fund family or between different fund families. There is no charge for switching within a no-load family of mutual funds, which offer a variety of stock, bond, and money market funds. Asales charge might have to be paid when switching from one load fund to another. Customers of many discount brokerage firms can switch among fund families, sometimes at no fee and sometimes by paying a brokerage commission. Switching usually occurs at the shareholder's initiative, as a result of changes in market conditions or investment objectives. Some investment advisers and investment advisory newsletters recommend when to switch into or out of different mutual funds. See also no-load fund.
Securities: selling stocks or bonds to replace them with other stocks and bonds with better prospects for gain or higher yields. See also swap.
