Fund conversion is also a common situation in fund investment. Fund conversion is limited to the conversion between open-end funds of the same company, and the expenses between the two funds are the same and marked as convertible. So which is more cost-effective, fund investment, fund conversion and selling? Let's get to know each other.

Which is more cost-effective: fund conversion or selling?

Fund conversion and trading are both ways to replace fund investment. In general, fund conversion is more cost-effective than fund selling and buying, mainly in two aspects:

1 Many fund companies will have preferential handling fees when switching funds. When the fund is converted, they only need to pay the redemption fee transferred to the fund and the compensation fee for the conversion; If the fund is bought and sold, there will be a redemption fee for selling the fund and a subscription fee for buying the fund, and the fund conversion is cheaper in cost.

In the case of fund conversion, the time for the fund to stand guard is shorter than that for the fund to sell and buy. If the fund is converted, it usually takes only one trading day to complete, and it will not exceed two trading days at the latest. It takes 1-2 trading days after the fund is sold, and it also takes 1-2 trading days to buy the fund again, during which investors will not be able to obtain fund income.

Generally speaking, fund conversion is more cost-effective. However, not all funds can be converted, so be sure to understand clearly before conversion.