Reclassification

The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event.

Sometimes mutual fund companies will decide to issue more than one series of similar mutual funds. Each series has different features and durations, and when the restrictions expire, they become reclassified to the fund with no restrictions.

Suppose that a company issues two mutual funds. Fund A is a no load fund, while Fund B is a five-year, back-end load fund. After five years, when there is no longer a load structure, Fund B will then be reclassified to fund A.


Investment dictionary. . 2012.

Look at other dictionaries:

  • reclassification — noun change, changed ordering of priorities, changed priorities, reallocation, reallotment, reanalysis, reapportionment, rearrangement, reassignment, reassorting, reassortment, reconstitution, redistributing, redistribution, reestablishment,… …   Law dictionary

  • reclassification — [spelling only] * * * …   Universalium

  • reclassification — [spelling only] …   English World dictionary

  • reclassification — noun The act of reclassifying; a second or subsequent classification …   Wiktionary

  • reclassification — n. act of classifying again, act of recategorizing, act of sorting again …   English contemporary dictionary

  • reclassification — re·classification …   English syllables

  • reclassification — noun classifying something again (usually in a new category) (Freq. 1) • Hypernyms: ↑categorization, ↑categorisation, ↑classification, ↑compartmentalization, ↑compartmentalisation, ↑assortment * * * (|)rē+ …   Useful english dictionary

  • Cannabis reclassification in the United Kingdom — refers to the transfer of cannabis [Cannabis is primarily a herb or plant but, generally, UK law treats the herb itself as a drug, whether or not a particular specimen or variety has real drug potential, or is grown for drug purposes. The Home… …   Wikipedia

  • U.S. reclassification program — The U.S. intelligence community s secret historical document reclassification program is a project to reclassify certain documents that have already been declassified and released to the public through the National Archives and Records… …   Wikipedia

  • United States Navy 1975 ship reclassification — The United States Navy reclassified many of its surface vessels in 1975, changing terminology and hull classification symbols for aircraft carriers, cruisers, frigates, and ocean escorts. Classification prior to 1975 From the 1950s to 1975, the… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.