This operation has the following advantages:
Easy to seize investment opportunities. If investors have some market experience, they can invest in money market funds when the market is in a downturn, and then convert the money funds into corresponding stock funds when the market improves. In this way, on the one hand, investors can enjoy the money fund income higher than the bank time deposit, and at the same time, they can also enjoy the income brought by the market rise. Similarly, if investors feel that the market is weak, they can convert equity funds into money market funds to avoid the impact of market fluctuations on realized returns.
Enjoy a lower rate. When the fund is converted, investors only need to pay a lower conversion rate, and do not need to pay a higher redemption and subscription rate. Generally speaking, in order to retain investors, fund management companies generally set a conversion rate of one thousandth (non-monetary funds are converted to each other), that is, the conversion rate of 1 10,000 yuan of assets payment 1 yuan, while the relative redemption and subscription rates are five thousandths and one point five percent respectively, that is, the assets of 1 10,000 yuan need to pay the redemption and subscription rates in 20 yuan.
Buy a product that suits you. When some investors buy funds, they don't know much about the funds they buy. Obviously, they are investors with high risk tolerance. As a result, they bought hybrid funds. However, some investors don't like funds with large fluctuations in net value, but bought stock funds by mistake when they bought them. When this happens, investors are advised not to redeem the fund immediately, but to choose the way of fund conversion to convert their existing funds into suitable fund products.
Save time. Compared with fund redemption and re-subscription, fund conversion can generally be completed in 2 working days, while fund redemption generally takes at least 4 working days to arrive, and subscription also takes 2 working days to confirm.