Fund Switching
Definition
What is Fund Switching?
Moving money from one fund to another, usually within the same fund managerThe licensed firm responsible for investment decisions and day-to-day management of a fund.'s product range.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. switches from an equity fundA fund that invests primarily in shares and seeks long-term capital growth. to a money market fundA mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits. as a near-term expense approaches.
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Related Terms
Lump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.
Investment MethodsDollar-Cost Averaging
Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.
Investment MethodsSystematic Investment Plan
An arrangement for making scheduled recurring contributions into an investment fund.
Returns & PerformanceTotal Return
The complete investment result from price changes plus income, assuming distributions are included.