What is the regular conversion of graded funds? What are the specific conversion steps? The editor below will introduce it to you in detail.

Special Lecture on Fund Conversion 1. What is the regular conversion of hierarchical funds? Regular conversion refers to converting the agreed income of share A (that is, the part greater than 1 yuan) into the parent fund after the end of each interest calculation cycle (usually one year).

Shares, investors can realize profits by redeeming parent shares.

Special Lecture on Fund Conversion 2. Can you give an example of regular conversion? What are the specific steps of conversion? Assume that the share ratio of Class A shares and Class B shares of a hierarchical fund is 1:1, and the agreement on the interest calculation cycle of Class A shares is

The yield is 5.8%.

An investor holds 10,000 basic shares, Class A shares, and Class B shares on the conversion base date. The net fund share values ??of the basic shares, Class A shares, and Class B shares before conversion are 1.292 yuan, 1.059 yuan, and 1.525 yuan respectively.

The following table shows the net value of fund shares of the three types of shares after conversion and the changes in shares held by investors.

The specific conversion steps are as follows: 1) The converted net value of Class A shares = the net value of Class A shares on the conversion base date - the agreed income of Class A shares = 1.059-0.058 = 1.0012) the converted net value of basic shares = (the converted net value of Class A shares + Class B

Net value of shares)/2=(1.001+1.525)/2=1.263Number of shares after conversion of basic shares=Net value of basic shares before conversion*Number of shares before conversion of basic shares/Net value of basic shares after conversion=1.292*10000/1.263=102293)A

The number of shares after conversion of Class A shares = agreed income * the number of shares before conversion of Class A shares / the net value after conversion of basic shares = 0.058*10000/1.263=4594) The net value and number of shares before and after conversion of Class B shares remain unchanged.

Special Lecture on Fund Conversion 3. What is the irregular conversion of graded funds? Irregular conversion, also known as point conversion, is a provision of graded funds to ensure the vitality of aggressive shares and limit the risk of priority shares.

Irregular conversion can be divided into upward conversion and downward conversion.

According to the fund contract, when the net value of the parent fund is higher than a certain threshold (currently the discount threshold for most stock-type tiered funds is set to 1.500 yuan), an upward discount is triggered; when the share of tiered fund B is lower than a certain threshold (currently the discount threshold for most stock-type tiered funds is set at 1.500 yuan),

The discount threshold of the type graded fund is set to 0.250 yuan), and the discount is triggered.

It should be noted that some tiered funds do not have downward conversion clauses. Instead, when the reference net value of share B of the tiered fund is lower than a certain threshold (usually 0.200 yuan or 0.100 yuan), shares A and B begin to rise and fall together.

.

Investors must carefully study and identify when investing in graded funds.

Special Lecture on Fund Conversion 4. Can you give an example of upward conversion? What are the specific conversion steps? There are currently two popular upward conversion methods for stock-type tiered funds. One is that the net values ??of A share, B share and basic share are all converted to 1

, the second is that the net value of A share, B share and basic share are all converted into the reference net value of A share.

Below are examples of situations.

1) Situation in which the net values ??of A shares, B shares and basic shares are all converted to 1. Assume that the share ratio of Class A shares and Class B shares of a hierarchical fund is 1:1. An investor holds basic shares, A shares on the conversion base date.

Class shares and Class B shares are 10,000 each. The net value of fund shares of basic shares, Class A shares and Class B shares before conversion are 1.50 yuan, 1.028 yuan and 1.927 yuan respectively. Then the net value of fund shares and investment of the three types of shares after conversion

The changes in shares held by investors are shown in the table below: The specific conversion steps are as follows: a) 10,000 basic shares with a net unit value of 1.50 yuan are converted into 15,000 basic shares with a net unit value of 1.000 yuan.

b) 10,000 Class A shares with a net unit value of 1.028 yuan are converted into 10,000 Class A shares with a net unit value of 1.000 yuan and 280 basic shares with a net value of 1.000 yuan.

c) 10,000 Class B shares with a net unit value of 1.927 yuan are converted into 10,000 Class B shares with a net unit value of 1.000 yuan and 9,270 basic shares with a net value of 1.000 yuan.

2) The net value of A share, B share and basic share is all converted into the reference net value of A share. Assume that the share ratio of Class A shares and Class B shares of a hierarchical fund is 1:1, and an investor holds the basic share on the conversion base date.

There are 10,000 shares, Class A shares, and Class B shares each. The net value of the fund shares of the basic shares, Class A shares, and Class B shares before conversion are 1.50 yuan, 1.028 yuan, and 1.927 yuan respectively. Then the fund shares of the three types of shares after conversion

The changes in net worth and investor holdings are shown in the table below.

The specific conversion steps are as follows: a) 10,000 basic shares with a net unit value of 1.50 yuan are converted into 14,591 basic shares with a net unit value of 1.028 yuan.

b) The number of shares and the reference net value remain unchanged after conversion for 10,000 Class A shares with a unit net value of 1.028 yuan.