First, the fund size limit.
In Public Offering of Fund, fund size is a very important regulatory indicator. According to the regulations of China Securities Regulatory Commission, the scale of a single bond fund shall not exceed 654.38+000 billion yuan, and the funds exceeding the limit need to be reduced or closed. Therefore, when the fund share reaches a certain scale, it can no longer carry more shares and can not be fully redeemed. This situation may sometimes cause the fund manager to be forced to sell some positions to meet the redemption requirements, which may lead to the decline of the fund's net value.
Second, the number of positions and liquidity are limited.
As a long-term and stable investment product, bond fund depends on its bond assets. Fund managers must rationally allocate assets and term structure and balance interest rate risk, liquidity risk and other risks. When a large number of investors redeem, fund managers are faced with the problem of changing positions, and the bond market, unlike the stock market, can buy and sell in real time. Affected by market transactions and legal supervision, the liquidity of some bond varieties in market transactions is limited to a certain extent, which will also cause trouble for fund redemption.
Third, credit risk.
Investing in bond funds means entrusting fund managers to buy and hold bond assets and taking some measures to reduce interest rate risk and credit risk. However, with the longer the bond is held, the credit risk will increase. When a large number of investors redeem, fund managers may be forced to cut some positions, but the credit risk of different bonds is different. If some high-risk bonds are included in the reduction position, the credit risk of the fund will be further improved.
Fourth, related expenses.
When the number of fund shares is large, the cost faced by fund managers increases accordingly. Fund managers can choose to sell some assets to get cash to meet the redemption requirements, but it also needs to pay the transaction costs generated by the sale, which limits investors' behavior of buying and redeeming bond funds in large quantities to some extent.
To sum up, the reasons why bond funds cannot be redeemed in full are not single, but involve many aspects such as fund size limit, number of positions, liquidity limit, credit risk and related costs. For investors, it is necessary to plan their investment strategies reasonably, avoid excessive redemption and subscription, and understand the restrictions on fund redemption in order to better grasp their investment risks.