The fund will not become negative. When the loss is large, it will be forced to redeem and the fund company will be liquidated. If the net value of the fund is lower than 0.7 (minimum 0.5), the fund will be liquidated and dissolved. So the maximum loss of principal is 50%.

Funds are long-term investments, so you must be prepared to hold them for a long time. Considering the investment period, try to avoid frequent subscription and redemption in the short term to avoid unnecessary losses. Recently, the stock market has continued to plummet, and the fund is naturally hard to escape. The collapse of the fund is also temporary, and holding the fund for a long time is rewarding.

Extended data:

The fund manager may adjust the above restrictions on the subscription amount and the number of redemption shares according to market conditions and with the permission of laws and regulations. The fund manager must make an announcement on at least one designated media and the fund manager's website before the adjustment takes effect, and report to the China Securities Regulatory Commission for the record.

The subscription and redemption of the fund shall start within 3 months after the fund contract comes into effect, and the fund manager shall make an announcement on at least one designated media and the fund manager's Internet website (hereinafter referred to as the "website") 2 days before the specific date of subscription and redemption. Fund redemption generally requires two working days for system confirmation and then liquidation. The fund subscription and redemption can only be said to be successful if it is confirmed by the T+2 system.

Baidu encyclopedia-fund redemption