Fund conversion
Fund conversion refers to a business model that investors can directly convert their fund shares into the fund shares of other open-end funds managed by the company after holding any open-end fund issued by the company, without redeeming the fund shares they hold before purchasing the target fund.
Fund sales
The fund is sold and the fund is redeemed. Investors directly or through an agency request the fund management company to withdraw part or all of the investment from the fund and remit the repurchase money to the investor's account.
The difference between fund conversion and selling
1, fund conversion is cheaper than fund selling: fund conversion does not need to pay subscription fees, and the conversion rate is lower; After the fund is redeemed, a redemption fee is required.
2. Different time-consuming: Fund conversion directly converts the fund shares it holds into the fund shares of other open-end funds managed by the company, which can save a lot of time compared with redemption in subscription and make the purchased funds give full play to their value.
3. Different fund selection ranges: fund conversion can only be converted into fund products of the same fund company, and all investment fund products subscribed to the optional fund market can be sold.
Fund conversion meets the requirements
1. Fund conversion can only be conducted under the same fund account of the same fund management company;
2. Transfer-out and transfer-in funds must be in a state of allowing subscription and redemption;
3. Fund conversion is generally only allowed between funds with front-end charges or back-end charges;
4. Fund management companies generally set a minimum fund transfer share, most of which is 1000.
I have said so much about the difference between fund conversion and selling, hoping to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.