reclassification
Definition
The process of changing a mutual fund from one class designation to another, due to a change in circumstances or requirements. This often happens when a company initially issues multiple series of mutual funds, and then after a certain series of events, one class of fund is reclassified as another class. One example of this is when a back-end load fund or front-end load fund is reclassified as a no-load fund once a given amount of time has passed.
Use reclassification in a sentence
“ You should always try and see if there is a way that getting a reclassification could help improve your results. ”
“ The fund underwent a reclassification process, but the underlying strengths of the fund did not suffer as a result, which was a relief. ”
“ Given the high level of economic uncertainty that the company was dealing with, Steven wasn't surprised to see a swift reclassification of the recently issued mutual funds. ”
