What is the time law of fund trading? What rules do we need to follow? What is the point that needs careful attention? Which fund budding newcomers must know! The following is a small series of when the fund can't be sold, hoping to help everyone.
When will the fund not be sold?
Funds can usually be sold at any time, which means they are highly liquid. However, under certain circumstances, the fund may be unable to sell or restricted from selling, such as:
Closed period: some funds have closed period, that is, they are not allowed to sell fund shares within the set period. In this case, investors need to wait for the end of the closed period before selling the fund.
Lock-up period: some funds may have a lock-up period, during which the fund shares cannot be sold. This usually applies to some special types of funds, such as private equity funds.
Stop subscription or redemption: Under extreme market conditions or at the specific decision of the fund management company, the Fund may suspend or restrict subscription or redemption to protect the interests of the Fund and investors. For example, when the market fluctuates violently, in order to prevent large-scale redemption from causing fund liquidity problems, fund companies may decide to stop or limit redemption.
Emergency: In case of emergency, such as the temporary closure of the market exchange and the suspension of business of the fund management company, the fund shall not be sold.
What are the risks of money funds?
Interest rate risk: the income of the money fund mainly comes from the short-term bonds invested. When the market interest rate rises, the income of the money fund may fall.
Credit risk: Although the money fund mainly invests in bonds with high credit rating, there is still the risk that the bond issuer will default. If the bond issuer defaults, it may lead to a decline in the net value of the money fund.
Liquidity risk: although money funds usually have high liquidity, there may be a risk that some or all of the fund shares cannot be redeemed in time under the tight market liquidity.
Risk of currency depreciation: If the currency invested by the Monetary Fund depreciates, it may lead to a decline in the fund's net value, thus affecting investors' income.
Managing risk: the performance of money funds is related to the investment ability and decision-making level of fund managers. If the fund manager's ability is insufficient or the investment strategy is improper, it may affect the performance of the fund.
Time law of fund trading
Fund trading hours: Monday to Friday, 9: 30am-1:30am, and afternoon13: 00pm-15: 00pm. Saturday, Sunday and national holidays are non-trading days of the fund, and no transaction will generate income, except for monetary funds.
Relevant provisions on fund trading hours:
1 Buy before 3pm on the trading day, calculated according to the net value of the day; For purchases made after 3 pm on the trading day, the net value of the next trading day (T+ 1) shall be adopted.
2 If the fund is purchased or redeemed before 3pm on the trading day, it will be counted as the transaction of the day, which will be confirmed on the next trading day (T+ 1) and the profit and loss will be checked on the next trading day (T+2).
3 The fund subscription or redemption after 3: 00 p.m. on a trading day is counted as a transaction on the next trading day (T+ 1), which is confirmed on the next trading day (T+2), and then the profit and loss can be checked on the next trading day (T+3).
Do not trade funds on weekends. Although the fund can trade 7x24 hours a day, it is only an appointment, and the transaction can be confirmed at the latest trading time.
Is there a time limit for fund trading?
Fund trading can be done at any time, as long as it is a working day, there is no limit.
It's just that the net worth calculation is different. Transactions before 15:00 on that day shall be calculated according to the net value of that day. If it is after 15:00, the rest day will be postponed to Monday according to the net value of the next day.
In addition, try not to trade between 14:30- 15:00, because the network is crowded at this time, and the transaction may not be completed, resulting in unnecessary losses.
When does the fund trading start?
The trading of funds needs to follow certain trading rules.
The purchase and sale of funds are calculated by share, and there will be a starting purchase amount, which is generally 100 yuan.
If the net value of the fund is 2 yuan at this time, then buying 100 yuan means buying 50 fund shares.
Many funds started with the fixed investment of 10 yuan.
If the subscription of the Fund is submitted on T day, the share will be confirmed on T+ 1 day.
T+ 1 update the net value at night to see the profit and loss, and the fund has only one net value every day.
Therefore, as long as you submit it before 3 pm that day, your purchase price is calculated according to the updated price of the net value that night.