With the increasing popularity of fund investment and financing methods, more and more people regard fund financing as their most important investment and financing means, and many investors know little about the difference between fund selling and fund conversion. When they don't want their own funds, what's the difference between fund conversion and selling? Let's take a look!

What's the difference between fund conversion and selling?

Fund conversion and selling are two different ways to deal with funds held by opponents. The specific differences are as follows:

1 The trading time is different.

Fund conversion time: apply for conversion on T day, and confirm the new fund share on the same day.

Fund selling time: selling on T day, confirmed on T+ 1 day, and received on T+2 day.

There is a difference in handling fees.

Fund conversion: the fund conversion fee is the redemption fee of the transferred fund plus the conversion compensation fee. When the subscription fee of Fund A is higher than that of Fund B to be converted, only the redemption fee of Fund A will be charged; When the subscription rate of Fund A is lower than that of Fund B to be converted, the difference between the subscription fees of the two funds needs to be added after the redemption fee of Fund B is charged.

Fund sales: the fund sales fee is a redemption fee charged according to the number of days of holding the fund and the transaction amount.

3 There are differences in trading methods and scope.

Fund conversion: fund conversion can only be replaced by open-end funds of the same company and the same expense type, and the conversion can only be carried out when the fund indicates that it can be converted, otherwise it cannot be operated.

Fund sales: after the fund is sold, if the funds are still used for fund investment, you can apply for other new funds, and then there will be no restrictions on fund types and fund companies.

The difference between fund conversion and selling

1, transaction method

Fund selling refers to the direct sale of the currently held fund shares, and the redemption funds are transferred to the investor's Alipay or bank account in cash.

Fund conversion is to sell the currently held fund share, and at the same time, the redemption amount directly buys another new fund, but the new fund share is received instead of redeeming the fund.

2. Transaction rate

Fund selling needs to bear the fund redemption fee. If you buy a new fund after redemption, you need to pay the subscription fee for the new fund. Fund subscription and redemption rates are determined by fund products.

Fund conversion can bear the redemption fee for the transferred fund, but the subscription fee for the transferred fund (new fund) only needs to make up the difference. If the subscription fee of the transferred fund is less than that of the transferred fund, for example, a stock fund is converted into a bond fund, then the subscription fee of the transferred fund is unnecessary.

3. Trading time

The time for general funds to be sold to the account is T+ 1, that is, they can be received before 24: 00 on the next trading day. The confirmation time of fund conversion is also+1, that is, the application for conversion is submitted on T, and it will be confirmed before 24: 00 pm on T+ 1.

4. Net fund value

The net selling value of the fund and the net conversion value of the fund are calculated according to the T-day net value, and both are traded according to the principle of unknown price. Whether it is selling or converting shares, you can't know the current net value when you operate.

The difference between fund conversion and sales;

1, the operation purpose is different.

Although both of them are changes in investors' income or risk tolerance or large fluctuations in the securities market, the investment risks brought about by some market fluctuations are dispersed and avoided through the conversion or redemption between different funds. However, direct sale and redemption may lead to the need to use funds to implement capital turnover.

2. There are differences in operation actions.

Fund sale is to sell all or part of the funds in hand for redemption, realization or reinvestment.

Fund conversion means that after an investor holds any open-end fund issued by a company, his fund share can be directly converted into the fund shares of other open-end funds managed by the company.

3. There are differences in costs.

Compared with the normal selling and re-subscription, the fund conversion technique saves the redemption and subscription costs and weakens the investment cost. However, fund conversion can only be converted with the company and will be constrained. There are no restrictions on fund trading.

Re-subscription requires payment of subscription redemption fee.

4. Time consumption is different.

Fund conversion directly converts the fund shares it holds into the fund shares of other open-end funds managed by the company, which can save a lot of time compared with subscription and redemption and make the purchased funds give full play to their value.

5. There are differences in the scale of fund selection.

Fund conversion can only be converted into fund products of the same fund company, and investment fund products can be sold and repurchased in the basic gold market.