Generally speaking, if the performance of the fund during its existence is not satisfactory, the net value of the fund share may fall, resulting in a decrease in the value of the fund share compared with the subscription period, which means that the fund may lose money when it is liquidated. In addition, there may be custody fees, liquidation fees, accounting firm fees, legal consulting fees, etc. When the fund is liquidated, this will also lead to losses during liquidation.
However, the loss during fund liquidation does not necessarily affect the investor's principal, because before fund liquidation, the fund manager must inform investors that investors can choose to redeem their fund shares before liquidation. According to the fund agreement, the value of the fund share will be calculated according to the net value on the redemption date. If the redemption value is higher than the purchase value, there will be no loss.
In short, only when the net value of fund shares is lower than the net value when investors buy funds, will there be losses when the funds are liquidated. Investors should carefully choose fund products according to their own risk tolerance and investment needs, and pay attention to the relevant announcements of fund liquidation to reduce the possibility of losses.