Passive selling of fund shares means that fund investors are forced to sell their fund shares under certain circumstances, rather than actively choosing to sell them. This situation usually occurs in some securities trading markets with violent fluctuations and bad market environment, which leads to a decline in the net value of funds or poor management of fund companies, resulting in losses and insufficient liquidity. In this case, fund companies usually choose to actively or passively sell part or all of the fund shares to ensure the healthy development of the fund.

There are many reasons for the passive selling of fund shares, the most important of which is the decline of fund net value. When the market environment becomes unstable or the economic situation becomes complicated, the net value of the fund may drop rapidly, causing the fund company to be forced to sell its fund shares to protect the rights and interests of investors. In addition, if the fund company is not well managed or the investment strategy is improper, it may also lead to the passive sale of fund shares, because assets must be sold to meet the redemption needs of investors, thus ensuring the liquidity of funds.

Fund investors should pay attention to the reputation of fund management company, fund risk rating, fund investment strategy and other important factors when choosing funds. Passive selling of fund shares will not only make investors face losses, but also affect the image and reputation of the industry. Therefore, investors should pay attention to the stability and risk management of funds and choose good fund management companies and professional fund managers in order to obtain more stable and long-term benefits. At the same time, investors should also pay close attention to the market situation and adjust their investment strategies in time to avoid being forced to sell fund shares when the market fluctuates.