The so-called discount means that when the net value of B share of graded funds falls to a certain price (such as 0.25 yuan), in order to protect the interests of A share holders, the fund company will discount the graded funds downwards according to the contract. After the conversion is completed, the net value of A shares and B shares will be restored to the initial net value 1 yuan, the holders of A shares will get their parent shares, and the share of B shares will be reduced according to a certain proportion. The parent fund, share A and share B are converted as follows:

The net share of B is 1, and the share is reduced. For example, 65,438+0,000 B shares with a net value of 0.25 yuan are converted into 250 B shares with a net value of 65,438+0 yuan. It is worth noting that the conversion is based on the net value of B shares, not the transaction price. In the actual process, the transaction price of B share is often higher than the net value, which leads to great losses for investors.

Converting A share into A share equals B share, and converting the remaining share into parent fund, with a net value of 1 yuan. For example, 1000 A shares are converted into 250 A shares, and the remaining 750 are converted into parent funds according to the net value. In practice, the transaction price of A share is often near 0.8 yuan, so it is usually expected to get a good return by buying A share when the discount is triggered. (Note: When the market is at the limit of most targets, that is, when the liquidity is extremely insufficient, buying A-share arbitrage may also suffer losses).

The net value of the parent fund returned to 1, and the share decreased. For example, 1000 parent fund net value of 0.65 yuan is converted into 650 parent fund net value 1 yuan.