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

Question

Quizplus · Accepted Answer

The statement is true. The conversion privilege allows investors to switch between funds managed by the same company, such as Fidelity or Vanguard, without incurring fees. This can be a useful tool for investors who want to shift their investments between different funds within the same fund family. However, it is important to note that not all funds within a fund family may be eligible for conversion, and different rules may apply depending on the specific fund and company.

The Conversion Privilege Allows Investors to Switch from One Fund