In addition, whether the fund can be converted requires some conditions.
It must be a fund under the same fund company.
Your trading channel must support fund conversion.
The two funds must be the same clearing company. For example, some LOF funds are settled in Deng Zhong companies, so they cannot be converted with general funds.
The transferred-out fund must be redeemable and the transferred-in fund must be available for subscription.
When trading on the direct selling platform of fund companies, support fund conversion to the maximum extent. If the transaction is carried out in a consignment channel, such as banks, brokers, third parties, etc. Then you need a consultation channel to ask if you support fund conversion.
For example, A and B are two funds of the same fund company, and someone changed from A to B on Monday morning. After finding the fund conversion, switch from fund selection A to fund selection B, and then confirm the transaction on Tuesday, that is, within one day. However, it involves the two-step calculation of the fund, first the redemption of the A fund, and then the subscription of the B fund. Redemption of Fund A is calculated according to the net value on Monday, and subscription of Fund B is also calculated according to the net value on Monday. Fund conversion requires conversion fee, which generally consists of redemption fee of Fund A and replenishment fee of Fund B. The replenishment fee of subscription fee is the difference between the subscription fees of two funds (the first one is minus the subscription fee of the second one, and if it is negative, it will be taken as 0), but individual fund companies have preferential treatment for fund conversion, and specific consultation is needed.
If there is no fund conversion, it will take several days for investors to exchange Fund A for Fund B. First, they will redeem Fund A, and then they can buy Fund B after the funds arrive, which delays the time. Through fund conversion, it can be completed in one trading day. Clever use of capital conversion can get twice the result with half the effort, save time and effort, and maximize the utilization rate of funds. Moreover, switching between high-risk funds and low-risk or risk-free funds can quickly avoid market risks or seize market opportunities.