Fund conversion. Fund conversion is the operation of converting one fund share into another, which is suitable for investors who want to adjust their investment portfolio, realize asset allocation or exchange for better investment opportunities. For example, when a fund has poor performance, investors can adjust their funds to a fund with better performance through conversion. The advantage of fund conversion is that it does not involve redemption and repurchase, which reduces transaction costs and tax impact. Fund redemption will trigger personal income tax and stamp duty, which will have a negative impact on the return on investment.