Graded fund transformation
This has been doomed since the publication of 18 "Guiding Opinions on Regulating Asset Management Business of Financial Institutions", and it is also a matter that many investors who hold graded funds have been worried about, because according to regulations, graded funds need to be completely transformed before the end of 2020.
The influence of the transformation of graded funds on investors
In fact, most of the conversions of graded funds have no influence on investors, and the main target is the investors who hold graded A and graded B, because graded A and graded B will be converted into equivalent parent funds or cash according to their net value when they expire. Although it doesn't seem to have much impact on investors, there is something fishy about it.
Generally speaking, even if the prices of Grade A and Grade B deviate greatly from the net value, it will not have much impact on investors, but this premise is that they will not be merged or converted. Once merged or converted, the discount and premium will make investors have floating profits or floating losses for no reason, which is why Stone told you before that larger graded parent funds can still be bought, but Grade A and Grade B should not participate.
Selection of graded funds
As the last time approaches, there are only three ways left before the graded fund:
1, transforming into a LOF fund should be the first choice for most large funds, and it is also a method that is more in line with the interests of investors and fund companies. This method has the least impact on investors, because only Grade A and Grade B are missing, but the on-site and off-site shares are still there;
2. This method is rarely used to transform into a general fund, because once this method is adopted, the on-site share needs to be transferred to the off-site. However, if the fund is relatively small and does not want to be liquidated, it is a good opportunity for transformation, and the fund can be directly transformed into an active or other hot and scarce index fund.
3, direct liquidation, this way is the fund company and fund investors don't want to see, but if the size of the fund is really small, so small that the fees charged by the fund company are not enough to pay the index fee and the salary of relevant personnel, then the fund will give priority to liquidation, which deserves our vigilance.
Graded fund after transformation
If the fund chooses direct liquidation, there is no need to discuss the impact on the parent fund. However, if it is transformed into an LOF fund, it will not change the nature of the fund, nor will it have an impact on the investors who invest in the graded parent fund, but we can pay attention to whether the fund rate will change.
There are many options for transforming into ordinary funds, such as changing from active funds to index funds or from index funds to active funds, so once the fund really chooses this transformation, we need to weigh whether the fund still meets our initial holding standards.