In the fund market, investors can not only redeem funds, but also convert funds. What's the difference between fund conversion and selling? What's the difference between fund conversion and selling? Today, Bian Xiao has prepared relevant contents for your reference. I hope it will help everyone!

There are the following differences between fund conversion and selling:

1, different trading methods

After the fund is converted, the investor will continue to hold the fund in his account, and after the fund is sold, the investor will hold cash, or he can use the cash to buy other funds in the market.

2. Differences in transaction costs

Generally, the redemption fee is charged according to the number of days held by investors and the transaction amount. For fund conversion, the transaction cost is equal to the redemption fee of the transferred fund+the subscription fee of the transferred fund to make up the difference, and for super conversion, the transaction cost is equal to the redemption fee of the transferred fund+the subscription fee of the transferred fund.

3. Different options

Ordinary investors can only convert other open-end funds under the name of their fund companies; Super-conversion investors submit applications through the fund platform trading system to convert their convertible fund shares into fund shares of any qualified fund company; After the fund is sold, it will be purchased, and the scope of its target will be wider, generally it is an open-end fund in the market.

At the same time, fund conversion needs to follow the following principles:

1, front-end to front-end, back-end to back-end principle

Front-end to front-end and back-end to back-end means that open-end funds with front-end charging mode can only be converted into funds with other front-end charging modes, and funds with zero subscription fees default to front-end charging mode; Funds with back-end charging mode are converted into funds with other back-end charging modes. Under special circumstances, individual funds support the exchange of front and back offices, and investors shall be subject to the provisions of the fund company.

2. Unknown price principle

The conversion price of the Fund is calculated on the basis of the net value of the shares transferred out and into the Fund on the day when the application for conversion is accepted.

3. Shared application and first-in-first-out principle

Fund conversion is based on shares. The subscribed fund shares are converted at the time of conversion, and the subscribed fund shares are converted at the time of conversion. If there is a redemption application at the same time on the day of the conversion application, it needs to be handled in accordance with the company announcement.

The difference between fund conversion and selling

I. Mode

All the shares sold by the fund, the money goes back to their own hands, and then they buy their own favorite funds. Fund conversion is to directly convert the holding amount of a fund into the share of b fund, and there is no contact with money in the middle of investment.

Second, interest rates.

There is a handling fee for selling funds. If you buy a new fund, you must pay the subscription fee for the new fund. The subscription and redemption rates of the Fund are determined by the fund products. Fund conversion is much cheaper than fund selling, because fund conversion does not need to pay subscription fee, and the conversion rate is low, but the subscription after fund redemption needs to pay subscription redemption fee.

Third, time.

It usually takes three trading days for the fund to sell, and the share can be confirmed by the second transaction of the fund conversion, which shortens the time to withstand market fluctuations.

disadvantaged

Of course, there are disadvantages. After all, there is a competitive relationship between fund companies, so many fund conversions only support the conversion of their own fund products. If you want to buy products from other fund companies, you still have to apply after redemption.

What's the difference between fund conversion and selling?

Fund conversion and selling are two different ways to deal with funds held by opponents. The specific differences are as follows:

1 The trading time is different.

Fund conversion time: apply for conversion on T day, and confirm the new fund share on the same day.

Fund selling time: selling on T day, confirmed on T+ 1 day, and received on T+2 day.

There is a difference in handling fees.

Fund conversion: the fund conversion fee is the redemption fee of the transferred fund plus the conversion compensation fee. When the subscription fee of Fund A is higher than that of Fund B to be converted, only the redemption fee of Fund A will be charged; When the subscription rate of Fund A is lower than that of Fund B to be converted, the difference between the subscription fees of the two funds needs to be added after the redemption fee of Fund B is charged.

Fund sales: the fund sales fee is a redemption fee charged according to the number of days of holding the fund and the transaction amount.

3 There are differences in trading methods and scope.

Fund conversion: fund conversion can only be replaced by open-end funds of the same company and the same expense type, and the conversion can only be carried out when the fund indicates that it can be converted, otherwise it cannot be operated.

Fund sales: after the fund is sold, if the funds are still used for fund investment, you can apply for other new funds, and then there will be no restrictions on fund types and fund companies.

1 There is a difference between fund conversion and selling funds. The main differences are as follows:

First of all:

The purpose of fund conversion is to save the time of selling the fund and buying the fund to confirm the share, so it greatly saves the time cost of investors' funds. Generally, when the fund is converted on T day, the new fund share will be confirmed on the same day; If the fund is sold, it needs to be confirmed by T+ 1 person, and the funds will not arrive until T+2. It will take at least 1 trading day to buy the fund after it arrives.

Second:

General fund conversion can only be converted into funds of the same company and the same expense type. Not all funds can be converted, and most funds have no conversion function. If you sell the fund directly and then buy it, the choice will be wider, not limited to the company's products, and all open-end funds can be entrusted to place orders.

The only similarity between fund conversion and fund sale is:

The high probability of the two costs is the same, because the platform conversion needs to make up the difference, and the cost of super conversion is the redemption fee for selling and the subscription fee for re-subscription, so no one is more cost-effective.