what is reclassification
DEFINITION of '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.ach 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.