Fund conversion means that the share holders of an open-end fund convert part or all of their shares of a certain fund into another open-end fund managed by the same fund manager. Fund conversion can only be carried out in the same sales organization, and the converted two funds must both be open-end funds managed by the same fund manager, registered in the same registration organization and charged in the same way. The advantages of this business are mainly reflected in the following three aspects:
1. Saving money by changing the type of fund investment is generally cheaper than the normal redemption and re-subscription business, which can save investment costs to the maximum extent.
2. Time-saving From the perspective of trading time, according to the original trading process, taking stock funds as an example, it usually takes 5 working days to redeem and re-purchase, and 2 working days is enough to choose fund conversion.
3. Avoiding risks When the market fluctuates, investors can avoid risks by switching between different styles of funds; In addition, when investors' risk tolerance changes, fund conversion can also help investors choose products that are more suitable for their own needs.