Which is better, fund conversion or redemption? What should I pay attention to when switching funds?

Hello everyone, I'm Jia Jia Li Xiao Cai. Now there are many people who buy funds, and some small partners feel that the funds in their hands are not good and want to change the positions and change the funds. But I don't know how to calculate the conversion fee of the fund? Is it cheaper than redeeming and buying again? What should I pay attention to when changing funds? Let's talk about it today. Like friends remember to point a note to encourage Jia Jia to do better.

First, let's talk about the trading rules for fund conversion. In the trading software, there is a fund conversion function, which is generally put together with the "redemption" function. Click "Redeem" and you'll see a prompt asking if you want to redeem or convert directly. If you want to do a fund conversion, you can do it at this time. The fund conversion fee consists of the redemption fee of the outgoing fund plus the fee of the conversion margin. Overall, the cost of a direct conversion is cheaper than if the fund is redeemed and then purchased. The reason is simple, in order to retain investors, the conversion fee of the fund company is generally one thousandth, while the redemption and subscription rates are 5/1000 and 1.5% respectively. Although some fund companies will have preferential treatment, the subscription rate of equity funds is usually more than one thousandth. Therefore, if investors want to convert to equity funds, it is more cost-effective to choose a direct conversion of funds.

In the actual operation process, investors need to pay attention to the conditions of fund conversion. Generally speaking, the two funds that apply for conversion must meet the following conditions: 1. Two open-end funds sold by the same sales agency and registered as the same registrant; 2. The open-end fund of the front-end charging model can only be converted to funds of other front-end charging models, and the funds with zero subscription fee default to the front-end charging model, and the funds of the back-end charging model can be converted into funds of the front-end or back-end charging model. 3. The redemption fee of the fund is paid when the investor submits the conversion application, and after paying the conversion fee, the investor can log on to the trading platform within T+2 working days to confirm it; if it is not displayed on the trading platform, the investor can directly call the customer service of the fund company to confirm the conversion.

Finally, we should note that although it is convenient to switch funds and the handling fee is relatively cheap, we must do a full investigation and analysis before changing the fund. Don't blindly replace the fund you have just because it's not as profitable as other funds. There are many reasons why the fund does not make money, some of which are that the stocks and sectors it buys are not currently hot, and some of which are indeed the management level of the fund manager. Similarly, some of the money-making funds are really good funds, and some are just catching up with the current hot spots. We need to look for good funds that have long-term investment value, rather than blindly chasing hot spots. After all, irrational investment is the hardest way to make money. If you only make money by luck, be prepared to lose money when you are unlucky.

Today's sharing is here, welcome everyone to pay more attention. 【Public number: Jia JiaLi Xiaocai】