Step 2 save money. If you redeem one fund first and then buy another, you have to pay not only the redemption fee, but also the subscription fee. If investors adjust their funds through fund conversion, they only need to pay the redemption fee and make up the difference through subscription. For example, for a bond fund of a fund company, the subscription fee is A and the redemption fee is B; The subscription fee of stock funds is X, and the redemption fee is Y. If you want to convert the company's stock funds into bond funds, you only need to pay Y, but if you redeem them first and then purchase them, you need to pay Y+A.. If you want to convert a bond fund into an equity fund, you need to pay B+(X-A), but if you redeem it first and then purchase it, you need to pay B+X. Therefore, the handling fee paid for fund conversion is lower than the handling fee required for re-subscription after redemption.
3. Save time and effort. Generally, it takes three to seven days for a fund to redeem and re-purchase. Need to redeem first, then apply for subscription after confirmation, and continue to wait for subscription confirmation. The fund conversion is the same as the subscription time of the general fund. When the fund company T+ 1 applies for conversion, the investor T+2 can inquire about the situation after conversion. This saves a lot of time and reduces the operation steps.