Fund transfer means that investors can directly convert their fund shares into the fund shares of other open-end funds managed by the company. It is a business model that does not need to redeem the held fund unit before purchasing the target fund.

Is the fund conversion fee high or the redemption repurchase fee high?

Not necessarily. The cost of fund conversion involves two funds. Suppose it is Fund A and Fund B, you need to pay the redemption fee of Fund A+the replenishment fee of subscription (subscription fee of Fund B-subscription fee of Fund A), while the conventional "redemption before subscription" fee needs to pay the redemption fee of Fund A+subscription fee of Fund B. But there is a difference between the subscription fee and redemption fee of the two funds, and it is impossible to absolutely judge who is older or younger.

If the fund conversion fee is lower than the redemption and repurchase fee, it is definitely more cost-effective for investors to directly convert the fund. Of course, it does not mean that investors can directly convert. Investors also need to meet certain conditions before transferring money:

1 Only open-end funds can be converted, but closed-end funds cannot be converted.

These two funds belong to the same fund, and both have opened fund conversion business.

In addition, when investors switch funds, the class A shares of funds can only be converted into class A shares, but not into class C shares, and QDII funds and LOF funds generally cannot be converted.