Fund share refers to the number of funds held by investors. Under normal circumstances, when investing in a fund, the amount invested by investors in the fund will be converted into the fund holding share according to the net value of the fund unit. When trading funds, they are all traded through fund shares, so when selling fund shares, do you follow the principle of first in first out? Let's get to know each other.

Do fund shares sell FIFO?

The sale of fund shares follows the principle of first in first out. When investors sell funds, they will give priority to selling the fund shares they bought first. For example, investors bought 500 funds last month and another 500 funds at the beginning of the month. When they sell 500 funds at the end of the month, they will give priority to selling the 500 funds they bought last month.

Most funds are sold first in first out. Of course, some funds follow the LIFO rule. Different funds have different regulations on fund transactions, and the provisions of the fund contract shall prevail.

When the fund is sold in batches, it should be noted that the remaining fund share after redemption cannot be lower than the minimum remaining share stipulated by the fund company (generally 1000). If it is lower than the minimum share, the fund manager has the right to redeem the remaining fund shares together.