The so-called fund conversion only occurs in graded funds. It is a clause set for the parent fund, class A and class B shares of graded funds. Its purpose is to protect the holders of Class A shares, cash out part of Class A income and prevent Class B from returning to zero.

Fund conversion is somewhat similar to fund split, but it is far more complicated than the latter. Irregular conversion is divided into upward conversion (referred to as upward conversion) and downward conversion (referred to as downward conversion). Downward conversion means that when the net value of Class B shares is lower than a certain level (usually 0.25), the net values of Class A and Class B shares are reclassified as 1, and Class B shares are reduced in a certain proportion (1/4 when the net value level is 0.25), while the corresponding share of Class A remains unchanged and other shares (3/4 when the net value level is 0.25).

Tips: The above contents are for reference only, not as any suggestions. Investment is risky, so be cautious when entering the market.

Response time: 2021-1-11. Please refer to the latest business changes announced by Ping An Bank in official website.