Can the fund be redeemed at any time?
Whether the fund can be withdrawn at any time depends on the type of fund purchased by investors. Funds are divided into open-end funds and closed-end funds. If it is an open-end fund, it can be redeemed at any time during the fund trading hours. If it is a closed-end fund, it needs to wait until the end of the closed period to enter the open period.
What are the restrictions on fund redemption?
1 redemption amount limit
Fund companies generally limit the redemption amount of funds, that is, the maximum amount that investors can redeem every day or week. If the redemption amount of investors reaches the upper limit, they need to be redeemed in batches or wait until the next trading day. The purpose of setting the redemption amount limit is to prevent the problem of insufficient capital turnover caused by excessive redemption by investors.
2 handling fee limit
Fund redemption requires a certain redemption fee, which is generally determined according to the time when investors hold the fund or the redemption amount. The longer the fund is held, the lower the redemption fee, even 0.
3 Settlement cycle limit
After the investor redeems, the fund company needs to settle and liquidate the fund. Generally, this process takes about 1 trading day or longer, depending on the relevant regulations and location of the fund company.