What's the difference between fund conversion and selling?
1 There are different trading methods.
After the fund is converted, investors will continue to hold the funds in their accounts; After the fund is sold, investors hold cash, which can also be used to buy other funds in the market.
2 differences in transaction costs
If ordinary conversion is carried out, its transaction cost = redemption fee of transferred-out fund+subscription rate of transferred-in fund to make up the difference; In case of over-conversion, the transaction fee = redemption fee of the transferred-out fund+subscription fee of the transferred-out fund. Generally, the redemption fee is charged according to the number of days held by investors and the transaction amount.
3 different choice ranges
Investors who convert ordinary funds can only convert other open-end funds under the name of their fund companies; Super-conversion investors submit applications through the fund platform trading system to convert their convertible fund shares into fund shares of any qualified fund company; After the fund is sold, it will be purchased, and the scope of its target will be wider, generally it is an open-end fund in the market.
1. Fund, in English, refers to a certain amount of funds established for a certain purpose in a broad sense. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.
From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.
Two, according to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.