Fund conversion refers to a business model in which investors can directly convert their fund shares into the fund shares of other open-end funds managed by the company after holding any open-end fund issued by the company, without redeeming the fund shares they hold before purchasing the target fund. The specific fundraising situation depends on the difference between the subscription rate and redemption rate of the two funds at each conversion.

The fund conversion fee consists of subscription fee and redemption fee. The specific charge depends on the difference between the subscription rate and redemption rate of the two funds at each conversion. The fund conversion fee shall be borne by the fund holder.

The fees to be charged for the expansion of information fund conversion mainly include: "redemption fee for transfer to fund" and "replenishment fee for subscription".

Redemption fee = redemption fund amount × fund redemption rate (the redemption rate of each fund company is different, generally 0.5%).

"Subscription fee supplement" is the difference between the subscription rates of two converted funds. If investors switch from funds with low subscription rates to funds with high subscription rates, they need to "make up the difference"; If an investor changes from a fund with a high subscription rate to a fund with a low subscription rate, there is no need to pay the difference.

The rate of supplementary subscription fee is equal to the absolute value of the difference between the two subscription fees. Su Zhenguo, financial manager of Industrial Bank, illustrated the cost calculation of fund conversion for readers.

Baidu Encyclopedia-Fund Conversion