In the domestic fund industry, there are seven main types of fund conversion: partial stock fund to partial stock fund, partial stock fund to bond fund, partial stock fund to monetary fund, bond fund to partial stock fund, bond fund to monetary fund, monetary fund to partial stock fund and monetary fund to bond fund. Let's explain in detail the application scenarios, switching costs and main advantages of these seven mainstream fund conversions.
Fund switching is not just about saving money.
The so-called fund conversion, simply put, is to combine fund redemption and subscription into one, seamless docking. It refers to a business model that investors can directly convert their fund shares into the fund shares of other open-end funds managed by a fund company after holding any open-end fund issued by a fund company, without redeeming the fund shares they hold before purchasing the target fund.
When it comes to fund conversion, investors may first think of saving money. Cost saving is undoubtedly a core selling point of fund conversion. When the fund is converted, it is not necessary to pay all the fund subscription fees, but only the (recognized) subscription compensation fee between the redemption fee of the transferred fund and the transferred fund. If the difference between the subscription fees of the transferred-in fund and the transferred-out fund is zero, then the investor only needs to pay the redemption fee of the transferred-out fund.
For example, 20 10, an investor subscribes to a stock fund, and the subscription fee is 1.5%, and 20 14. He is going to change the fund into another stock fund with better performance. The subscription fee of the fund is also 1.5%, so the conversion fee of investors is reduced to 0. Because the holding period is more than 3 years, in 2065+04,
It is worth noting that fund conversion can only be carried out between different funds of the same fund company, and the fund products of different fund companies cannot be converted.
In addition, fund conversion can save time and improve investment efficiency, especially for redeeming partial stock funds.
Generally speaking, the redemption funds of partial stock funds will not arrive until the fourth day, and it usually takes about 6 days to arrive every weekend. If it is the National Day or the Spring Festival holiday, it will take ten days, wasting time and reducing investment efficiency.
Using fund conversion can solve this problem well. The confirmation transfer-out date and transfer-in date of fund conversion are the same day. That is to say, if an investor places an order from Fund A to Fund B before 3pm on1October 6th, the conversion will be conducted according to the unit net value of Fund A and Fund B on June 6th165438+1October 6th, so as to realize seamless docking.
If investors convert partial stock funds into money funds, they can enjoy the expected annualized expected return of money funds for 4 to 10 days more than redemption of money funds. For the conversion between partial stock funds, investors don't have to worry about missing the market or the possible skyrocketing of the stock market during the stock market conversion process.
In addition, the investor's fund conversion can be carried out in the agency or fund company. However, consignment banks, brokerage firms and other institutions do not necessarily sell all the funds of a fund company, and less support fund conversion. The fund company's own online trading platform has the most complete conversion. Therefore, if the fund previously purchased by investors is in the bank channel, they need to go to the sales platform of the fund company before they can convert the fund in the online direct sales of the fund company.
The monetary fund has become a springboard for transformation.
For more than a year, money fund is the fastest growing and most popular fund product among all fund types. There are four mainstream transformations involving money funds: partial stock funds to money funds, bond funds to money funds, money funds to partial stock funds, and money funds to bond funds, among which money funds have become an important springboard for fund investment.
When partial stock funds or bond funds are converted into money funds, because there is no subscription fee for money funds, compared with redemption and re-subscription, conversion will not save money, but only save time. The longest redemption period written in the prospectus of partial stock funds and bond funds is 7 trading days. In practice, both partial stock funds and bond funds are redeemed by T+4, so the redemption efficiency is relatively low. If investors convert partial stock funds or bond funds into money funds and then redeem them at T+0 of the money fund, they can redeem the funds on T+2, that is, the day after confirmation of conversion and the day after confirmation, they can be converted into money funds for T. In this transaction, the money fund has become a springboard to shorten the redemption time.
For partial stock funds, converting into money funds is a good hedge. When the fund chosen by investors rises sharply, investors can convert it into a money fund to temporarily avoid possible risks in the market, and then choose a new partial stock fund for conversion.
Money funds can also be converted into partial stock funds or bond funds. As a cash management tool, money fund is increasingly welcomed by investors. Many investors put short-term idle funds in money funds or precious metal products mainly based on money funds. When they are selected as partial stock funds or bond funds under the same fund company, investors can make convenient investments through conversion.
In addition, some fund companies also offer a special discount of 1% subscription fee for money funds or treasure products converted into partial stock funds or bond funds. For example, Huaxia Fund, southern fund, Bosera Fund, Rongtong Fund, Wanjia Fund and other fund companies have carried out or are carrying out preferential activities of 1% subscription fee for converting money funds or treasure products into partial stock funds or bond funds. These transactions must be indicated on the fund company's website and APP.
Step on the seesaw of debt-to-equity swap
In the fund conversion, using the seesaw effect of stock bonds, the conversion between partial stock funds and bond funds is the most common and one of the mainstream fund conversions.
When the economy is improving and the annualized interest rate is expected to rise, investors will convert bond funds into partial stock funds and share investment opportunities in the economy-driven stock market. The most obvious example is that in 2009, driven by 4 trillion investment, the economy and the stock market are improving; When the economy is bad and the annualized interest rate is expected to go down, investors should talk about converting partial stock funds into bond funds for investment. The most obvious examples are the stock market crash in 2008 and the obvious rise of bonds in the second half of the year.
In most periods, the stock market and the bond market have a seesaw effect. The best way for investors to seize this opportunity is to switch investments between partial stock funds and bond funds in a timely manner. Only under some special circumstances can stocks and bonds rise or fall at the same time. For example, since 20 14, the stock market and bond market have risen at the same time. Although the economic situation is not good, investors' policy expectations are improving, driving the stock market to rise. Under the bad economic situation, it is expected that the annualized interest rate will be reduced and the funds will be relaxed, thus driving the stock market to rise. The simultaneous decline of stocks and bonds occurred at 20 1 1, when the local government debt crisis, the expected annualized interest rate soared, the price of credit bonds plummeted, the economy was also greatly affected, and the stock market also fell sharply.
Because the subscription fee of partial stock funds is generally slightly higher than that of bond funds, when partial stock funds are converted into bond funds, they generally do not need to pay the difference in subscription fee, but only need to pay the redemption fee. The redemption rate of holding 1 year to 2 or 3 years is generally 0.25%, and the expense rate is not high.
However, when investors switch from bond funds to partial stock funds, investors should pay attention to the fact that the fund switching fee may be higher. For example, the subscription fee of a bond fund is only 0.7%, and that of a partial stock fund is 1.5%, so investors need to pay a redemption fee and a 0.8% subscription fee spread when transferring from this bond fund to a stock fund. But from the cost point of view, it is more cost-effective for investors to apply for stock funds immediately after redeeming bond funds. Investors who switch from bond funds to partial stock funds need to compare the conversion fee and the subscription fee after redemption, which is lower.
Some products in bond funds have been charged a subscription fee of 1%, and many index funds in partial stock funds have also been charged a subscription fee of 1%. When bond funds are converted into index funds, the subscription spread may be zero.
Partial stock funds are widely used in mutual transfer.
In addition to the above-mentioned conversion between partial stocks, bonds and money funds, similar funds can also be converted, but the application of converting money funds into money funds or bond funds into bond funds is less, which is not as extensive as the application of converting partial stocks into partial stocks.
In partial stock funds, they are also divided into stock type, index type and mixed type, with different risk levels. More importantly, the main investment products are different and the fund managers are different, which leads to great differences in performance between partial stock funds. Even if you invest in partial stock funds of the same fund company, the internal conversion between partial stock funds is also very important.
Generally speaking, the internal conversion of partial stock funds mainly depends on two aspects. First of all, look at the differences between fund managers. Some large fund companies have a large number of stocks and hybrid funds, and the corresponding fund managers may have more than 10. Although * * * uses the company's investment and research platform, the performance of funds managed by different fund managers varies greatly. Investors can carefully study the situation and historical performance of fund managers and choose funds that are more suitable for conversion.
Another application is the conversion between stock or hybrid funds and index or industry funds. In recent years, industry index funds or industry funds have developed rapidly. Investors can choose to replace their original stocks or hybrid funds with more distinctive fund types in the investment industry. In addition, GEM, SME board, CSI 500 and other characteristic or small and medium-sized index funds perform well, and investors can also switch from active stocks or hybrid funds to these index funds.
Before investors want to convert partial stock funds, they need to carefully study and analyze the investment style and historical performance of fund managers transferred to the fund. If the subscription fee is 1.5%, the subscription fee will not be charged at the time of conversion, but the redemption fee of 0.5% will still be paid at the time of conversion or redemption within 1 year, so investors should not switch funds frequently.
In addition, the conversion between domestic partial stock funds and qualified domestic institutional investor (QDII) is also one of the hot spots in the market. In recent years, QDII investing in US stocks and excellent QDII investing in Hong Kong stocks have achieved good investment performance, and the correlation between overseas markets and domestic markets is weak, which can be a good tool to diversify investment risks and obtain stable investment income. Therefore, some investors convert some long-term partial stock funds into QDII products.
For those investors who subscribe for stock hybrid funds very early, they can have the opportunity to switch to other partial stock funds for free.
According to the regulations, the purchased stocks or hybrid funds have been held for more than 3 years, and the fund redemption fee is zero. Even if they adopt the back-end charging model, they have held it for more than 6 years, and the redemption rate of most products is zero. In this case, if investors switch to fund products with the same subscription rate or lower subscription rate under the same fund company, they can realize zero-cost fund exchange.
It is worth noting that most of the products that investors flocked to buy at that time were giant fund products. Due to the huge scale of products, the performance in previous years was generally lower than the average or the worst, and some fund products issued later were moderate or slightly smaller, which was more suitable for the market environment in recent two years. Therefore, those old citizens who have invested in giant funds can consider studying the partial stock funds subsequently issued by the same fund company and make a zero-fee conversion.
Having said that, I just want you to know all the benefits of fund conversion. I suggest you switch funds at the right time to make the fund investment smoother and expect higher annualized expected returns.
Introduction reading
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