What's the difference between fund conversion and selling?
The trading hours of 1 are different.
Fund conversion is to apply for conversion on T day and confirm the share of the new fund on the same day. The fund will be sold on T day, confirmed on T+ 1 day, and received on T+2 day.
2 different transaction costs
The fund conversion fee is the redemption fee of the transferred fund plus the conversion compensation fee. For example, when the subscription fee of Fund A is higher than that of Fund B to be converted, only the redemption fee of Fund A will be charged; When the subscription rate of Fund A is lower than that of Fund B to be converted, the difference between the subscription fees of the two funds needs to be added after the redemption fee of Fund B is charged.
Fund sales fees are charged according to the number of days investors hold the fund and the transaction amount. Specific calculation formula: redemption fee for fund sale = redemption amount * redemption rate. Generally speaking, the longer the fund is held, the lower the handling fee, and even the redemption fee is waived.
3 different trading methods and scope
Fund conversion can only be replaced by an open-end fund of the same company and the same expense type, and it can only be converted when the fund indicates that it can be converted, otherwise it cannot be operated. However, there is no such restriction on fund sales. After the fund is sold, investors can use the money to continue to invest in fund products, or spend or buy stocks and other investments.
4 Different costs
Compared with normal fund selling, fund conversion saves redemption and subscription costs, reduces the cost of investors' continued investment, and is more suitable for investors who want to continue investing in fund products.
The above are some differences between fund conversion and fund selling, so you can pay attention to them.