Why is there a fund conversion?
Unlisted funds can only be converted regularly, and listed funds can be converted regularly and irregularly.
1, periodically converted
At this time, the share of B may have exceeded the value of A 1 or 2. It will be converted from time to time, and the purpose of discount at this time is to restore the high leverage of the fund.
No matter what the net value of the fund is, the main purpose is to protect the interests of A share holders. Simply put, rising too well or falling too badly will lead to irregular conversion of graded funds, all of which will be converted.
2. Irregular transformation
The treatment of irregular conversion is different, and the discount of graded funds usually means that the net value of B shares falls to zero, which triggers the discount.
Is fund share conversion a dividend?
According to the above reasons for the conversion, we can understand that the fund conversion does have dividends, but there are more than one reason.
When investors encounter fund conversion, they must first understand the reasons for the fund conversion. If the share of Fund B exceeds 1 and 2, then dividends do occur at this time, which has little impact on investors. If the conversion is due to the sharp decline of the fund, it does not bode well for investors, and investors should take measures as soon as possible.
We will stop here about whether the fund share conversion belongs to dividends, hoping to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.