Fund suspension of trading generally has the following situations:
1, during holidays and non-trading hours, the fund is closed to stop trading and suspended from opening; Funds that suspend subscription before holidays are usually monetary funds. Stock funds are closed on holidays, but money funds are still profitable, and investing in money funds has obviously become the first choice for many idle funds compared with the poor income from putting idle funds in current deposit accounts.
A large amount of funds poured in in a short period of time, and the investment targets in the market were limited. It was difficult for fund managers to effectively allocate a large amount of concentrated funds in a short period of time, which may cause the newly purchased funds to dilute the income of the original monetary fund holders. This is also why fund companies generally "closed their doors" before the festival, mainly to prevent a large inflow of arbitrage funds from diluting the income of the old holders, stabilize the investment income and protect the interests of the old holders.
2. The fund is in a closed and open period at the initial stage of its establishment, and trading is suspended; Closed-end funds, such products are designed to operate in a closed way to ensure that the scale is constant and not affected by daily redemption, so the subscription is suspended during the operation of the products.
3. The fund company temporarily suspends trading, and suspends trading from the perspective of fund operation; On the one hand, the scale of funds that fund managers are good at managing is within a certain range, which is beyond their ability, and it will become more difficult to make good performance; On the other hand, if the scale of the fund is too large, there may be situations where the managed funds are not used properly, the risks are uncontrollable and even the investment strategy is forced to change, which will affect the income level of the fund. In order to better ensure the normal operation of products and protect the interests of holders, fund managers may choose to suspend subscription to control the fund size.
4. Temporary intervention measures taken by the fund to unilaterally suspend subscription or redemption in order to ensure the interests of investors or prevent the market from fluctuating on the net value of the fund.
It is good to suspend the subscription for a long time. Because it can control the size of the fund, so that the fund share does not change greatly to dilute the income per share. The purpose of suspending the subscription of this fund is to protect the interests of the holders and temporarily stop the subscription business of this fund. This is good for the holder, there is no danger, but it is more beneficial.