How is it that the fund can't be redeemed?
1, the fund is in a closed period.
Some funds have a certain closed period when they are issued, which means that investors cannot redeem them during this period. The purpose of this is to ensure that the fund has enough time for long-term investment planning and avoid frequent capital inflows and outflows affecting the investment income of the fund.
2. Suspension of fund redemption
Some funds will suspend the redemption operation under special circumstances. The purpose of this is to protect the interests of funds and investors and avoid liquidity crisis or excessive losses caused by abnormal market fluctuations or huge redemptions. Generally speaking, the suspension of redemption is rare, and investors will be informed in advance, and the reasons and duration of the suspension will be explained.
Other considerations:
1, redemption fee
When the fund is redeemed, it may need to pay a certain fee, that is to say, investors can't recover all the proceeds, but deduct a part as transaction costs. Generally speaking, the redemption rate of funds will be indicated in the fund prospectus, and some funds are free of redemption fees.
2. The arrival of funds may be delayed.
After applying for redemption of the fund, it will take some time for the funds to arrive, and investors can't use this part of the funds before redemption.
3. Redemption strategy
When investors redeem funds, they need to comprehensively consider their financial objectives and market conditions in order to formulate reasonable redemption strategies. Investors are not advised to blindly follow suit to redeem funds. When redeeming the fund, it can be considered to be done in batches, that is, according to a certain proportion and time interval, so as to smooth the investment income.
The above are some contents of fund redemption, so you can pay attention to them.