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. Investors can handle fund conversion in any sales organization, sell the transferred fund and transfer it to the target fund at the same time. The two funds to be converted must be managed by the same fund manager represented by the seller and registered in the same registration institution.

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.

Fund redemption fee

Redemption fee

According to the redemption rate applicable to each transferred-out fund share on the conversion application date, the redemption fee of the transferred-out fund on the conversion application date is calculated; Based on the redemption rate applicable to the zero holding time of the transferred-out fund, the redemption fee of the same amount transferred to the fund on the conversion application date is calculated. If the redemption fee of the transferred fund is higher than that of the transferred fund, the redemption fee difference will be charged; If the redemption fee of the transferred fund is not higher than that of the transferred fund, the difference of redemption fee will not be charged.

Composition of subscription fee

For the conversion between two pre-paid funds, the subscription fees of the transferred-out fund and the transferred-in fund on the application date are calculated respectively according to the transferred-out amount, and when the fund with low subscription fees is transferred to the fund with high subscription fees, the difference of subscription fees is charged; Funds with high subscription fees are transferred to funds with low subscription rates, and no difference is charged.

Fund subscription fee

For the conversion between two post-charged funds, the post-subscription fee of the transferred funds on the application date is calculated based on the post-subscription rate applicable to each transferred fund share on the application date; Based on the subscription rate applicable to the zero holding time transferred to the Fund, the subscription fee of the same amount transferred to the Fund on the conversion application date is calculated. When a fund with high subscription fee is transferred to a fund with low subscription fee, the difference of subscription fee will be charged; When a fund with a low subscription fee is transferred to a fund with a high subscription fee, the difference is not charged. For the conversion from the back-end paid fund to the front-end paid fund, the subscription fee received for the transferred-out fund is calculated based on the subscription rate applicable to each transferred-out fund share on the application date of conversion; According to the transferred amount, the subscription fee in advance transferred to the fund on the conversion application date is calculated. In addition to the subscription fee after the fund is charged, when the subscription fee is lower than the previous subscription fee, the subscription fee difference will be charged, otherwise the difference will not be charged.