Fund discount is divided into regular discount and irregular discount.
There are generally two situations for regular conversion: the first working day of each year or the open day after the fund completes 1 operation cycle; Some funds switch A and B shares respectively, while others switch parent funds and A shares.
Graded funds usually convert when the net value of the parent fund rises to a certain extent, and publish the conversion information.
When will the fund be discounted?
Unlisted funds can only be converted regularly, and listed funds can be converted regularly and irregularly.
1, periodically converted
No matter what the net value of the fund is, the main purpose is to protect the interests of A share holders. Simply put, rising too well or falling too badly will lead to irregular conversion of graded funds, all of which will be converted.
2. Irregular transformation
Irregular conversion is handled in different ways. However, the discount of graded funds usually means a decline in the net value of B shares (generally, the decline distance is between 5%- 10%, depending on the specific fund analysis), and graded funds trigger the discount.
What if the fund is discounted?
In fact, fund discount is not necessarily a bad thing. Under normal circumstances, the fund discount will not substantially change the net value of the fund. As long as we know the reasons for the fund discount, we can deal with it effectively and not suffer losses.
This is the whole content of fund discount. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.