Regular conversion refers to the act of readjusting the net value of a certain type or types of shares according to the frequency agreed in the fund contract. A graded fund may agree on share conversion. Generally speaking, the agreed income at the end of the sub-share with lower expected risk and income (that is, the net value of the sub-share reference share exceeds 1 yuan) is converted into the parent fund share and distributed to the sub-share holders. Since each parent fund consists of two types of fixed-proportion sub-shares, when the sub-shares with lower expected risks and returns are periodically converted, the parent fund will also be periodically converted accordingly.

What is irregular transformation?

Irregular conversion, also known as integral conversion, refers to the conversion mechanism that graded funds can set an upper limit or a lower limit. When the reference net value of a certain share reaches a certain threshold, the share will be converted. Generally speaking, when the reference net value of the sub-shares with higher expected risks and returns or the net value of the parent fund shares reach the prescribed threshold, the fund manager will adjust the net value of all kinds of shares to 65,438+0 yuan on the fund share conversion base date, and their respective shares will increase or decrease accordingly.