Fund dissolution, also known as fund liquidation, refers to the realization of all fund assets and the distribution of the proceeds to fund holders, which is the same as compulsory redemption.

Fund liquidation is different from stock delisting. As long as the net value of the fund is not zero on the liquidation day, even if the fund is liquidated, all the money in the account can still be recovered after liquidation without loss.

According to China's Fund Law, if the public offering of funds lasts for 60 consecutive working days and the number of fund share holders is less than 200, the fund company may initiate liquidation; Or if the net asset value of the fund is less than 50 million for 60 consecutive working days, the fund company may also initiate liquidation. Fund liquidation caused by insufficient scale is also a common reason for fund liquidation.