Definition - What does Conversion Privilege mean?
Conversion Privilege is The right offered to a mutual fund investor, which allows them to move money between different portfolios offered by the same mutual fund family without paying another sales charge.
Testopedia explains Conversion Privilege
Many mutual fund companies will offer investors conversion privileges that will allow the investor to move money between the different portfolios offered by the fund company. Investors may want to move money to portfolios with different investment objectives as their own investment objectives change or as market conditions change. Selling and purchasing the portfolios at the NAV will still create a taxable event for the investor.