Huge redemption means that when the net redemption amount of an open-end fund (the balance after deducting the total number of redemption applications) exceeds 10% of the fund size, and the redemption acceptance ratio is not less than 10% of the total fund size, the fund manager can postpone the processing of the remaining redemption applications.
When fund investors apply for redemption, they need to choose the huge redemption processing method of redemption application between continuous redemption and cancellation redemption.
Extended data
Matters needing attention
1. Not all purchases are guaranteed at any time.
The commitment of capital preservation fund can be divided into subscription capital preservation and subscription capital preservation. At present, among all the capital preservation funds in the market, only Southern Hengyuan has made a commitment to subscribe for capital preservation, and the rest have made a commitment to subscribe for capital preservation.
To put it simply, these capital preservation funds can only enjoy the capital preservation treatment when investors buy stocks at the time of raising, but they can't enjoy the capital preservation treatment when they buy stocks at the time of opening subscription in the future. For investors, if they want to protect their capital, they can only consider buying a capital preservation fund during the raising period.
2. There is no guarantee of early redemption.
Experts pointed out that even if there is a loss, it is best not to redeem the capital preservation fund in advance, because the security of the principal cannot be guaranteed. The fund company's commitment is to provide capital preservation commitment only for the fund assets subscribed during the raising period and held by the fund assets whose capital preservation period expires. If investors redeem the fund because of the urgent need for funds, the investment principal will not be guaranteed.
3. Redemption penalty rate in advance.
The share change of capital preservation fund is relatively small, which is somewhat similar to closed-end fund. Therefore, the capital preservation foundation throws most of its money out, unlike open-end funds, which always leave a sum of cash to deal with redemption, but it will be passive when redemption occurs.
. Therefore, for the investment redeemed in advance, the redemption rate of the capital preservation fund is relatively high, which is punitive to some extent. If the holding period is more than one year but less than 1.5 years, the redemption rate of CCB capital preservation is 1.6%, and Huitianfu capital preservation is 2%.
For those who hold/kloc-0 for more than 0.5 years and less than 3 years, the capital preservation ratio of CCB is 1.2%- 1.6%, while Huitianfu is reduced to 1%. Therefore, if you invest in a capital preservation fund, you'd better be prepared for a "protracted war", which will last for more than three years. Recently, however, the first one-year capital preservation fund in China, China Resources Yuanda Capital Preservation Fund, has been issued, breaking the three-year holding period limit.