Investors can handle fund conversion in any sales organization that sells both the fund to be transferred out and the target fund. The two converted funds must be managed by the same fund manager represented by the seller and registered in the same registration institution.
Fund investment, in addition to the most basic purchase and redemption, fund companies also provide a fund conversion service. The so-called fund conversion means that investors do not need to redeem their original fund shares, but directly convert their original fund shares into other fund shares under the same fund management company.
Rational use of fund conversion can bring many benefits. The weather is unpredictable, and I'm afraid no one can accurately grasp the changes in the stock market. Investors can change different types of funds and adjust the composition ratio of their portfolios according to the changes in market conditions, so as to make their portfolios more in line with the development trend of the market. For example, when the stock market fluctuates greatly, high-risk stock funds will be converted into low-risk money funds or bond funds to increase the allocation coefficient of low-risk products; On the contrary, when the market is optimistic, you can allocate more stock funds.
One of the benefits of fund conversion is to save money. If you redeem one fund first and then buy another, you have to pay not only the redemption fee, but also the subscription fee. If investors adjust their funds through fund conversion, they only need to pay the redemption fee and make up the difference through subscription. For example, for a bond fund of a fund company, the subscription fee is A and the redemption fee is B; The subscription fee of stock funds is X, and the redemption fee is Y. If you want to convert the company's stock funds into bond funds, you only need to pay Y, but if you redeem them first and then purchase them, you need to pay Y+A.. If you want to convert a bond fund into an equity fund, you need to pay B+(X-A), but if you redeem it first and then purchase it, you need to pay B+X. Therefore, the handling fee paid for fund conversion is lower than the handling fee required for re-subscription after redemption.
Another advantage of fund conversion is that it saves time and effort. Generally, it takes three to seven days for a fund to redeem and re-purchase. Need to redeem first, then apply for subscription after confirmation, and continue to wait for subscription confirmation. The fund conversion is the same as the subscription time of the general fund. When the fund company T+ 1 applies for conversion, the investor T+2 can inquire about the situation after conversion. This saves a lot of time and reduces the operation steps.
Therefore, fund conversion is more time-saving and simpler than normal redemption and re-subscription, which can be said to save money, time and effort. Since fund conversion has so many benefits, can any two funds be converted at will? In fact, there are certain conditions for fund conversion.
First of all, the two funds participating in the fund conversion business must be "three-in-one" funds represented by the same sales organization, managed by the same fund manager and registered by the same registration institution. Secondly, when investors handle the fund conversion business, the transferor's fund must be in a redeemable state, and the transferee's fund must be in a subscription state, that is, one is allowed to buy and the other is allowed to sell. The fund in the subscription period cannot be used as the transferor or transferee of the fund. Investors should pay close attention to this point when operating. Third, the fund conversion adopts the mode of "front-end to front-end, back-end to back-end". The front-end paid fund share cannot be converted into the back-end paid fund share, and the back-end paid fund share can also be converted into the front-end paid fund share.
There will be some differences in the business rules for switching between different fund companies and different consignment agencies. You must remember to clarify their business rules before handling the conversion business, so as to better play the fund conversion.