This means that every time (regularly or irregularly), the fund company will adjust the share of the fund according to a certain proportion, so that the net value of the fund is equal to 1 or close to 1, so that the share of investors will increase or decrease accordingly, but the proportion held by everyone remains unchanged, which has no impact on everyone's rights and interests.

The significance of conversion is not only to restore leverage. In many cases, conversion is also a mechanism to cash in earnings and protect A-share holders.

Extended data

Classification:

1. Periodic conversion: refers to the conversion at a fixed time. There are generally two situations: the first is the first working day of each year; The second is the open day after the fund completes 1 operation cycle. At the time of regular conversion, no matter what the net value of the fund is, it will be converted.

2. Irregular transition: This requires a trigger condition. In most cases, when the net value of the parent fund reaches 1.5, or the net value of B shares falls to 0.25. Simply put, rising too well or falling too badly will lead to irregular conversion.