What happened when the fund stopped trading?
The suspension of fund trading means that during this period, the fund cannot purchase and redeem, and the transaction is suspended. After the fund is closed, the subscription and redemption will be open, and there are also unilateral restrictions, such as suspension of trading.
Suspension of fund trading is mostly because the fund company controls the size of a fund, that is, the total share, and sometimes it is also to avoid and disperse the risks brought about by violent market fluctuations.
Why is the fund suspended?
1, the fund is oversubscribed by investors, which leads to the rapid growth of the fund scale and needs to be suspended.
2. The Fund may pay dividends, so the subscription of the Fund is suspended.
3. The funds are due to holding some shares of the company that have not yet been circulated, and these shares of the company that have not yet been circulated resume trading. In order to protect the interests of holders, these funds decided to suspend subscription.
Impact of fund suspension of trading
For funds that have been bought and suspended, the expected return of investors will not be affected. Fund companies will also issue corresponding announcements. During the suspension period, the net value is generally released once a week, and investors can judge the rise and fall of their expected net income according to the published net value.
The above is about the suspension of fund trading, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.