1. Scale management: Fund share conversion can help fund companies manage fund scale. When the scale of the fund is too large, it may affect the investment effect and operational efficiency of the fund. Through share conversion, a large share can be converted into a small share, thus controlling the fund scale reasonably.
2. Reduce transaction costs: Fund share conversion can reduce the transaction costs of investors. When investors need to redeem a large share, they may have to pay a higher redemption fee if there is no share conversion. Through share conversion, investors can convert large shares into small shares, thus reducing the redemption cost.
3. Maintain the liquidity of the fund: fund share conversion can improve the liquidity of the fund. When investors need to buy large shares, they may face the problem of insufficient liquidity if they do not convert shares. Through share conversion, investors can convert small shares into large shares, which improves the liquidity of the fund.
In short, the purpose of fund share conversion is to maintain the fairness and liquidity of funds, help fund companies manage their scale, reduce the transaction costs of investors and improve the liquidity of funds.
I hope the above information is helpful to you.