The conversion of the fund's net value has no substantial impact on investors. If a fund has 1 million units on a certain day and the net assets of the fund are 5 million yuan, the net value of the fund unit is 5 yuan. In order to reduce the net value of fund units, give investors the impression of cheap funds, and attract investors to buy, some fund companies take measures to split funds. For example, in the above example, the fund company split the shares at a ratio of 1:5 and manually adjusted 1 million shares into 5 million shares. Since the fund's net assets of 5 million yuan have not changed, the net value of the fund unit has dropped from 5 yuan to 1 yuan. Such fund share splits and net value conversions will not have a significant impact on fund investors.

If an investor holds 10,000 shares before the fund splits, the fund assets will be 50,000 yuan. After the fund is split, the fund shares will only become 50,000 shares, and the fund assets will still be 50,000 yuan. There are minimum selling requirements for selling funds. For example, the minimum selling standard is 200 shares. Funds cannot be sold before the discount. After discount, if the shares are higher than the minimum share standard, they can be sold. Fund conversion refers to adjusting the total number of fund shares according to a certain proportion on the premise that the net asset value of the fund remains unchanged, and correspondingly reducing the net value of fund units.

That is, after conversion , the total number of fund units and the fund units held by the holders will be adjusted, but the adjusted proportion of fund units to the total fund units will not change. Fund shares are proof of public issuance to investors. The holder enjoys relevant rights such as the right to distribute the expected annualized income of the fund property, the right to acquire the remaining property after liquidation, and assumes corresponding obligations. Fund share conversion means that on the premise that the net asset value of the fund remains unchanged, the total number of fund shares is adjusted according to a certain proportion, and the net value of fund units is correspondingly reduced.

After the shares are converted, the total number of fund shares and the fund shares held by the holder will be adjusted, but the proportion of the fund shares held by the holder to the total fund shares will not change after the adjustment. The conversion of shares has no material impact on the holders' equity. For details, please refer to the relevant announcements on the conversion of each fund’s shares. The end date of capital verification is the fund share conversion day. The fund manager converts the fund shares to the net value of fund shares of 1.0000 yuan on the end date of capital verification, and then calculates the fund shares that investors should obtain through centralized subscription based on the net value of fund shares on that day, and the registration agency confirms the investors Concentrate subscription shares.