What's the difference between fund conversion and selling?
The difference between fund conversion and selling lies in the difference of transaction mode, transaction cost and selection range. Fund conversion and fund selling are both strategies for investors to invest in funds. There are the following differences between them:
1, different trading methods
After being converted into a fund, it is still a fund, but when they get rid of this fund, the funds in their hands can also be converted into cash or even another fund.
2. Differences in transaction costs
Usually, the redemption fee is calculated according to the number of days that investors hold the fund and the transaction amount. Regarding the fund conversion, if ordinary conversion is carried out, the grass transaction fee is the sum of the redemption fee of the transferred fund and the compensation for the subscription rate of the transferred fund. In case of oversubscription, the transaction cost is the cost of redemption funds+the cost of subscription funds.
3. Different options
Investors who have completed ordinary conversion can only convert other open-end funds they hold; Investors who exceed the convertible share ratio can adjust their convertible share ratio to the ratio held by any fund company through the trading system of the fund platform; Compared with the fund bought after selling, its target is wider, generally all open-end funds in the market.