Fund conversion market: investors convert their fund shares into those of other funds, and fund selling refers to investors selling their funds to recover their funds. Both of them are strategies for investors to invest in funds, and each has its own advantages. So which way should investors choose is more cost-effective?

Which is more cost-effective, fund conversion or selling?

We can compare the data:

1. From the transaction rate point of view, selling the fund needs to bear the redemption fee. If you buy a new fund after redemption, you need to pay the subscription fee according to the subscription rules of the new fund. The redemption rate and subscription rate are determined by the fund company, so the rates of different funds will be different. Fund conversion also needs to bear the redemption fee for selling funds, but when converting new funds, only the difference of subscription fee needs to be paid.

2. From the transaction time, the redemption time of funds is generally T+ 1, and some funds need longer time. Fund subscription also requires T+ 1 time to confirm the share. If it is a fund conversion, you can confirm the share at T+ 1 Therefore, the transaction time of fund conversion is shorter.

Compared with the two, fund conversion may have some advantages. Fund conversion is more practical, which can save both transaction costs and transaction time. But not all funds support mutual conversion. Investors need to make a choice according to the actual situation.