Fund conversion and fund securities are two important concepts in the field of investment funds. Fund conversion refers to the conversion according to the net value and share of the fund, so as to ensure that fund investors buy and redeem shares according to the net value. Fund securities refer to fund products as securities investment tools. This paper will introduce these two aspects in detail.

First, the concept and principle of fund conversion

Fund conversion refers to the conversion according to the net value of fund shares when purchasing and redeeming fund shares to ensure fairness and accuracy. Net fund value refers to the amount of fund assets divided by the total fund share after deducting liabilities. The principle of fund conversion is to adjust the ratio between fund share and net value according to the change of net value.

The calculation formula of capital conversion is:

Conversion share = redemption amount/net value of the day

Fund conversion usually occurs when investors buy and redeem fund shares to ensure that investors trade according to the net value. Through fund conversion, investors can participate in fund investment fairly and transparently and enjoy the same rights and interests as other investors.

Two. Definition and types of fund securities

Fund securities refer to fund products as securities investment tools, also known as securities funds. Fund securities are investment instruments issued and traded through stock exchanges or over-the-counter transactions. Fund securities can be divided into stock type, bond type, hybrid type and index type.

1. Equity fund securities:

Stock fund securities are fund products with stocks as the main investment object. Mainly investing in the stock market, aiming at pursuing high and long-term capital appreciation. Equity funds have relatively high securities risk, but also have high income potential.

2. Bond fund securities:

Bond fund securities are fund products with bonds as the main investment object. Mainly invest in the bond market, with steady income as the goal. Compared with stock fund securities, bond fund securities have lower risk and are suitable for investors with lower risk preference.

3. Mixed fund securities:

Hybrid fund securities are fund products that invest in the stock and bond markets. The proportion of stocks and bonds can be adjusted according to market conditions to meet different investment needs. The risk and return level of hybrid fund securities are between stock-based and bond-based fund securities.

4. Index fund securities:

Index fund securities are fund products with a specific index as the reference standard. Its investment strategy is to track the performance of a specific index and try to cooperate with the rise and fall of the index. The risk of index fund securities is relatively low, which is suitable for investors who pursue stable returns.

Third, the relationship between fund conversion and fund securities

Fund conversion is an important link in the operation of fund products, which ensures investors to trade according to the net value and guarantees the rights and interests between investors. Fund conversion is the basis of fund securities trading, and the issuance and trading of fund securities need the participation of fund conversion.

Fund conversion enables investors to buy and redeem fund shares at a fair price by converting the ratio of fund shares to net worth. The accuracy and fairness of fund conversion is very important to investors, which directly affects investors' investment income and risk control.

Fourth, the influencing factors of fund conversion

Fund conversion is influenced by many factors, mainly including the change of fund share net value, market liquidity and cost.

1. Changes in the net value of fund shares:

The change of fund share net value is one of the main influencing factors of fund conversion. When the net value of fund share rises, the conversion share of fund conversion will decrease accordingly; When the net value of fund shares falls, the conversion share of fund conversion will increase accordingly.

2. Market liquidity:

Market liquidity refers to the degree of transaction activity and capital liquidity in the market. When the market liquidity is low, the conversion share of fund conversion can be adjusted to ensure the normal operation of the fund.

3. Cost:

Fund conversion is also affected by fund operating costs. Fund operating costs include management fees and custody fees. These expenses will affect the net value and converted share of the fund.

The meaning of verb (verb's abbreviation) fund conversion and risk warning

The significance of fund conversion lies in ensuring that fund investors trade at net value and providing a fair and transparent trading mechanism. Fund conversion can ensure that investors enjoy the same rights and interests and reduce the unfairness and risks among investors.

Investors also need to pay attention to some risks when participating in fund conversion. There may be some errors in fund conversion, and investors need to carefully check the relationship between the converted share and the net value. Fund conversion may be affected by market fluctuation and liquidity, so investors need to pay attention to market conditions and fund operation.

Summary:

Fund conversion is an important concept in fund investment, which ensures investors to trade according to their net value and guarantees the rights and interests among investors. Fund securities are fund products as securities investment tools, including stock, bond, hybrid and index. Fund conversion is closely related to fund securities, and fund conversion is the basis of fund securities trading. Investors should pay attention to risks when participating in fund conversion, and at the same time be aware of the significance and importance of fund conversion.