Fund conversion means that investors convert their open-end funds into other open-end funds under the same fund management company. The biggest difference between it and repurchase after redemption is that it can be converted in time and can save fees. Redeem the fund first and then buy it, and the cost is as high as 2%. In order to retain customers, fund companies implement preferential rates for fund conversion of old customers. For example, some fund companies only have a conversion fee of 0.2%.

However, financial experts also reminded that you can't switch funds at will because the fund switching rate is low. Only when you have certain specific conditions can you switch to funds and achieve better investment results. When the investment market changes greatly, the fund can be converted: when the stock market is not good, the stock fund can be converted into bond fund or money fund, which can avoid the loss caused by the shrinking net value of the fund; When the stock market is improving, it is advisable to replace bond funds and money funds with stock funds and enjoy the return on investment brought by the growth of fund net value.

In addition, when the investor's risk tolerance changes, the fund can also be converted. When investors' personal risk tolerance declines due to unemployment, retirement, illness and other reasons, they can convert stock funds into bond funds or money market funds; On the other hand, when the individual's ability to resist risks is enhanced by the improvement of income conditions such as promotion and salary increase, we can consider converting bond funds or money market funds into excellent stock funds to achieve the purpose of maintaining and increasing value.