Fund conversion refers to a business model in which investors can directly convert their fund shares into the fund shares of other open-end funds managed by the fund company after holding any open-end fund issued by the fund company, without redeeming the fund shares they hold before purchasing the target fund. How to reduce the handling fee for fund conversion?

Cost saving is undoubtedly a core selling point of fund conversion. When the fund is converted, it is not necessary to pay all the fund subscription fees, but only the (recognized) subscription compensation fee between the redemption fee of the transferred fund and the transferred fund. If the difference between the subscription fees of the transferred-in fund and the transferred-out fund is zero, then the investor only needs to pay the redemption fee of the transferred-out fund.

It is worth noting that fund conversion can only be carried out between different funds of the same fund company, and the fund products of different fund companies cannot be converted.

In addition, fund conversion can save time and improve investment efficiency, especially for redeeming partial stock funds.

Generally speaking, the redemption funds of partial stock funds will not arrive until the fourth day, and it usually takes about 6 days to arrive every weekend. If it is the National Day or the Spring Festival holiday, it will take ten days, wasting time and reducing investment efficiency.

Using fund conversion can solve this problem well. The confirmation transfer-out date and transfer-in date of fund conversion are the same day. That is to say, if an investor places an order from Fund A to Fund B before 3pm on1October 6th, the conversion will be conducted according to the unit net value of Fund A and Fund B on June 6th165438+1October 6th, so as to realize seamless docking.

If investors convert partial stock funds into money funds, they can enjoy the expected annualized expected return of money funds for 4 to 10 days more than redemption of money funds. For the conversion between partial stock funds, investors don't have to worry about missing the market or the possible skyrocketing of the stock market during the stock market conversion process.

In addition, the investor's fund conversion can be carried out in the agency or fund company. However, consignment banks, brokerage firms and other institutions do not necessarily sell all the funds of a fund company, and less support fund conversion. The fund company's own online trading platform has the most complete conversion. Therefore, if the fund previously purchased by investors is in the bank channel, they need to go to the sales platform of the fund company before they can convert the fund in the online direct sales of the fund company.