Navigating Mutual Fund Transfers Within a Family of Funds

Being able to exchange mutual fund shares between mutual funds is one of the major advantages of investing into a family of funds. A family of funds is a company that offers many different mutual funds to invest in. Here are the basics of exchanging mutual fund shares in a family of funds.

Exchanging Shares

With a family of funds, you will be able to easily exchange shares from one fund to another. Therefore, if you decide that you no longer want to be involved in a large-cap mutual fund, you can trade your shares for shares in an income fund. Typically, you will be able to easily do this by contacting your broker with the company. He or she will be able to make the exchange for you and provide you with the information that you need about the new fund.

Fees

One of the major advantages of using this method is that you can lower the amount of fees that you pay in transaction costs. Traditionally, whenever you sell and buy shares, you will have to pay some sort of a commission. However, when you work with a family of funds, you can lower or completely eliminate the costs.