Fund redemption is more suitable for selling funds directly. Fund conversion is more suitable for selling the held fund and replacing it with another fund. Because fund redemption needs to buy another fund after the funds arrive, the fund transaction is T+2, which takes up more time while occupying funds. It may miss the best opportunity to enter the market, and there is a redemption fee for fund redemption, which may increase transaction costs.

Fund conversion can realize seamless connection from one fund to another.

Conditions for fund conversion

1. Both funds are convertible funds at the same time, because not all funds support conversion.

2. If both funds are in front-end charging mode or A is in back-end charging mode, then Fund B can be in front-end charging mode or back-end charging mode.

3. Closed-end funds and QDII and LOF funds cannot be converted into funds.

Some fund sales platforms also have the function of "super conversion", that is, on the same working day, the redemption of transfer-out funds and the subscription of transfer-in funds between different fund companies are started at the same time. "Super conversion" can realize fund conversion between products of different fund companies.

Time and cost of fund conversion

In terms of trading time, apply for conversion before T day 15: 00, and the share transferred to the fund can be confirmed on T+ 1 day.

The fund conversion fee includes the redemption fee for the transferred-out fund A and the subscription fee for the transferred-out fund B. If the two funds belong to the same fund company, they only need to make up the subscription fee, otherwise they will normally pay the subscription fee for the fund B according to the standard.

In order to make full use of the convenience of fund conversion, in the process of selecting funds, we can consider managing large fund companies, and the product lines are generally rich, so there will be more choices for fund conversion.