Analysis on whether funds can be converted when they fall

In the process of fund trading, fund declines are a common phenomenon. Many investors don’t know what to do when funds fall, so if funds fall Can time be converted? How to do it? Next, the editor will analyze for everyone whether the fund can be switched when it falls:

Can the fund be switched when the fund falls?

Yes.

After holding a fund of a fund company for a certain year, investors can directly switch to other funds managed by the company when other circumstances arise or the fund declines, as long as it meets the regulations of the fund company. Fund conversion conditions, funds can be converted regardless of whether they are losing money or making profits.

However, fund switching must be decided based on actual circumstances. If the fund itself is relatively high-quality, has good development prospects, has good past performance, and the fund manager has rich management experience, but it only declines due to market fluctuations, then the fund is not suitable for fund conversion because the fund will rise later. The probability of Ade is high, and you may miss out on a profit by switching funds; if the fund's losses are due to factors other than market factors, such as the fund itself is not of high quality, the fund manager has improper management, etc., then investing when the fund falls will Investors can switch funds and stop losses in time.

What needs to be reminded here is that when switching funds, investors should choose funds with higher level fund managers and relatively high quality funds for investment.

How to switch funds?

Investors can directly convert funds in the fund trading software. After choosing to redeem the fund, the system will automatically pop up a selection box and select fund conversion.

Fund conversion is not able to convert all funds on the market. It needs to meet certain conditions (it is a convertible fund), and some funds cannot be converted. However, when these investors operate fund conversion, the system will Automatic prompt.

Advantages of fund switching:

1. Reduce investment costs

Direct fund switching can save investors a handling fee, which is the fund subscription fee , fund switching only requires the difference between the redemption fee and the subscription fee of the transferred fund.

2. Speed ??up the transaction time

According to the normal transaction process, if the fund is redeemed first and then repurchased, it will take about 5-7 days; if you choose to convert the fund directly , then the operation can be completed on the same day, saving time and cost.

3. Reduce investment risks

Investors can change the fund shares and types they hold through funds to avoid market risks.

When will the fund rise back in 2023?

Whether the fund will rise back in 2023 mainly depends on the market conditions and the investment direction of the fund. If the market conditions are good and the fund's investment direction is in line with market trends, the fund may rise. However, if the market conditions are not good, or the fund's investment direction is contrary to the market trend, the fund's growth may be limited. At present, the global economic market is gradually recovering, and with the ceasefire between the two sides and the epidemic under control, market expectations will gradually improve.

Therefore, the fund may rise in 2023, but when it will rise back, it still needs to be judged based on the actual situation of the market. It is recommended that when investing in funds, investors should choose appropriate fund products based on their own risk tolerance and investment goals, and conduct sufficient research and analysis to reduce risks and increase returns.

Advantages of fund switching:

1. Reduce investment costs. To switch funds through normal fund subscription and redemption, a 2% handling fee is required. For direct fund conversion, you only need to pay the redemption fee of the transferred fund and the difference between the transfer fee and the transfer fee, which saves handling fees and greatly reduces investors' investment costs.

2. Shorten investment time. To switch funds through normal fund subscription and redemption, it takes about 5-9 hours of time between buying and selling the fund. For direct fund switching, investors can switch some funds on the same day and determine the share of the newly purchased fund on the same day, which can shorten the time and cost by 2-4 days, so fund switching saves more time.

3. Quickly adjust asset allocation. When investors have problems with their income or held funds and need to adjust their asset allocation, they can directly switch funds and quickly adjust positions. It can also get rid of losing funds faster and switch to funds with good subsequent trends and greater profit potential.

4. Reduce investment risks. When major fluctuations occur in the securities market and the funds investors invest in begin to lose money, investors can directly switch between funds to change the share and type of funds they hold to diversify and avoid the investment risks caused by market fluctuations.

Disadvantages of fund conversion:

1. Strict conversion requirements. It is required that the fund that the investor wants to adjust and the new fund that he wants to subscribe for are products of the same fund company, the two funds have the same registrant, the fund products are sold by the same fund agency, and the charging models of the two funds are the same. , funds can be converted to each other.

2. There are few funds to choose from.

When buying and selling funds normally, you can freely choose funds sold on the market and there are many choices. However, due to the many restrictions on fund conversion, investors have narrowed the range of fund types they can choose.

3. The fund price is unknown when transferring out. The price of the fund at the time of transfer is uncertain and may exceed the amount expected by the investor. If the actual transfer-out amount is greater than the pre-transfer-out amount, that is, the actual net value of the converted fund is higher than the estimated net value, the system will return the difference to the investor after the fund conversion is confirmed.

During the conversion process, there are the following characteristics:

1. The handling fees during the fund conversion process are generally the redemption fee of the transferred fund and the subscription rate of the transferred fund. The sum of the difference, that is, the handling fee = the redemption fee of the transferred fund + the subscription fee of the transferred fund to make up the difference. Compared with the fund redemption and repurchase, the cost is cheaper.

2. If an investor switches Fund A to Fund B before 15:00 that afternoon, the income on that day will be counted as Fund A, and the next trading day will be counted as Fund B; if in If Fund A is converted to Fund B after 15:00 that afternoon, then the income of that day and the income of the next trading day will be counted as Fund A, and the income of the next trading day will be counted as Fund B.

3. The price of the fund is unknown when the fund is switched. If the actual transfer-out amount is greater than the pre-transfer-out amount (actual purchase amount), that is, the actual net value of Fund A is higher than the estimated net value, the system will return This difference will generally be returned to investors after the fund conversion is confirmed.

In addition to switching to other funds when losing money, investors can also adopt the following investment strategies:

1. Cover positions

When a fund loses money, If investors believe that the fund will rebound in the later period, or are reluctant to sell out, they can choose to cover positions during the decline of the fund. By continuously covering positions, they can reduce the cost of holding positions and diversify risks.

2. Sell high and buy low

When the fund loses money, investors can use the short-term rebound of the fund to perform T operations, that is, buy a part of the fund at a low level, and then buy a portion of the fund at a low level. Sell ??when the price is high to earn a certain price difference and reduce the cost of holding a position. It should be noted that in the process of selling high and buying low, the price difference income earned must be greater than the handling fee. Otherwise, the gain outweighs the loss.

3. Cut off the funds

When the fund loses money, investors think that the fund is poor and there is no hope of rebounding in the future. In order to avoid the losses caused by the fund's continued decline, they can choose to cut off the funds and exit.

4. Hold positions unchanged

Of course, when investors are not very sure about their active investment strategy, they can also adopt a passive investment strategy: hold positions unchanged and wait for the fund to rebound. set.