I believe that friends who have been in contact with fund investment for a long time will have heard of fund conversion. So, what is fund conversion? I have compiled the following contents for you. Come and have a look!

It is understood that fund conversion is a means to adjust graded funds, mainly for Class A shares in graded funds. Usually, when fund companies issue graded funds, they will set relevant conversion clauses, that is to say, when a fund purchased by investors rises to a certain height or falls to a certain low point, the parent fund, A share and B share will all become the standard of 1 yuan according to the net value.

Fund conversion can not only keep the balance of fund leverage, but also enable investors to obtain part of fund income by redeeming fund shares, which is equivalent to giving preference shares with Class A shares the privilege and can increase the attractiveness of Class A fund shares to some extent.

There are two main ways of fund conversion: regular conversion and irregular conversion, as follows:

I. Regular conversion:

Regular conversion refers to conversion on the conversion date agreed in the contract. There are two main situations: one is to set the conversion date on the first working day of each year; The other is the open day after the fund has been in operation for one year. The maturity date of fund conversion is 1, regardless of the net value of the fund.

2. Irregular transformation:

Unlike regular conversion, irregular conversion is only for listed funds and can only be carried out after certain conditions are met. Usually, only when the net value of the parent fund reaches 1.5 or the net value of B shares falls to 0.25 (rising too high or falling too low) will the fund be converted.

Through the above, I believe everyone knows what fund conversion is, which can balance the leverage of the fund and enable investors to obtain some fund income by redeeming fund shares.