All open-end funds will have the possibility of huge redemption. The huge redemption of money funds is more likely to be related to institutional investors and bank currency liquidity.
When the number of shares redeemed on a certain day is greater than 10% of the previous trading day, it is called huge redemption.
When there is a huge redemption, the fund manager can handle it in the following two ways without making the net value of the fund fluctuate greatly as much as possible:
The first is to continue full redemption.
At this time, the fund manager thinks that he has the ability to redeem, and only needs to redeem according to the normal redemption process.
The second is partial deferred redemption.
At this time, the fund manager feels that the fund is temporarily unable to pay, or it will have a greater impact on the net value of the fund, and can choose to postpone the redemption of the part exceeding 10%. Of course, this has nothing to do with everyone's redemption time, because the redemption confirmation of the money fund is at T+ 1, so for a single investor, the redeemable share is distributed in proportion. The redemption of other parts will be postponed to the next trading day. Of course, for those shares that are delayed in redemption, the time for settling the expected annualized expected return will be delayed by one day, and the rich will not lose one more day of expected annualized expected return-
How to operate this part of the delayed redemption share may be different for different funds, depending on the fund rules of specific funds. Take the E Fund for example. "Unless the investor explicitly declares that he will not participate in the redemption of the next open day when submitting the redemption application, it will be automatically postponed to the next open day."
Summary: the foundation has a prospectus, which will list all kinds of situations and their handling methods. If you don't understand something, you can check the reasons in the prospectus. In addition, a huge redemption of the money fund is possible, such as 13 in June. Monetary fund is a very safe and stable investment channel. When there is a huge redemption, the rich don't have to panic too much because of misunderstanding, and avoid all "runs" to aggravate the tension of huge redemption, because it is not impossible to redeem, but only postponed to the next trading day.