Investors using the conversion privilege to move money from one mutual fund to another within the same family may incur a tax liability.

Question

Quizplus · Accepted Answer

When investors use the conversion privilege to move money from one mutual fund to another within the same family, it triggers a taxable event as the sale of the first fund generates a capital gain or loss. Therefore, investors may incur a tax liability.

Investors Using the Conversion Privilege to Move Money from One