The conversion of graded fund shares refers to the conversion of fund shares under specific circumstances due to income distribution or regular operation. Graded fund refers to a fund variety with a certain differentiated share that decomposes the fund income or net assets under a portfolio to form two or more levels of risk-return performance.

After the conversion of fund shares, the total number and amount of fund shares held by the holders will be adjusted, but the proportion of fund shares held by the adjusted holders in the total number of fund shares will remain unchanged. The ways of grading fund share conversion can be divided into regular share conversion and irregular share conversion.