Series 7 - General Securities Representative Exam
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Your client has a broad, diversified portfolio within the same fund family. His outlook has changed, and he wants to decrease his equity funds holdings and increase his debt fund holdings. What might you suggest?
Sell him class A equity shares in a new fund family
A
Sell all of his bond funds, then buy Class C equity fund shares in a new fund family
B
Exchange some of his equity fund to another fund in the same fund family
C
Exchange equity fund shares in one fund family for bond shares in a new fund family.
D
Explanations
Exchange privilege allows an investor to exchange shares of a mutual fund for another fund in the same fund family for little to no cost. It must be mutual funds within the same fund family