The conversion privilege allows investors to switch from one fund to another without fees if and only if the funds are managed by the same company such as Fidelity or Vanguard.

Question

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The conversion privilege is a feature that many mutual fund companies, including Fidelity and Vanguard, offer to their investors. It allows investors to switch or convert their investment from one fund to another within the same fund family without incurring additional sales charges or fees, assuming both funds are managed by the same company. This feature provides flexibility to investors to adjust their investment strategies without the penalty of extra costs.

The Conversion Privilege Allows Investors to Switch from One Fund