More and more people begin to manage their money through funds. Some things in fund investment are not common, but some investors will encounter them, such as fund share conversion, which is to increase the fund share according to a certain proportion. What effect does the fund share conversion have on the fund?

What effect does the fund share conversion have on the fund?

If the fund share increases, the net value of the fund unit will decrease according to the reciprocal of the share multiple, but it has no effect on the total assets of the fund and the total assets of investors. For example, the total assets of the fund are 65.438+0 billion yuan, with a share of 6.5438+0 million shares and a unit net value of 6.5438+0 million shares. After converting the fund shares into 2 million shares, the unit net value will be reduced to 50 shares, and the total assets will remain unchanged.

Usually, funds with relatively high unit net worth are converted into fund shares. The advantage of fund share conversion is that it can improve the enthusiasm of the market to buy the fund, because after the net unit value is reduced, the purchase threshold is also lowered.