1. When the fund price reaches the liquidation line, for example, it is lower than 0.3 yuan, it may be delisted;
2. The net value of the fund is less than 50 million for 20 consecutive working days, or the number of fund holders is less than 200 for 20 consecutive working days;
3. The scale of new fund raising is not up to standard. In the initial public offering, there is a minimum scale, generally 50 million. If it does not reach the scale, it means that the fund has failed to issue and needs liquidation.
Liquidation is generally completed within one month after the termination of the fund. According to different fund companies, the liquidation time may be different, and the specific time shall be subject to the announcement of the fund company.
Before the fund is liquidated, the fund company will issue a liquidation announcement in advance. During this period, investors can redeem funds or convert funds to avoid losses caused by liquidation. If investors do not redeem, they will enter the liquidation stage. In the liquidation stage, the fund manager will no longer accept the application for subscription and redemption put forward by investors. At the same time, those who stop collecting fund management fees, fund custody fees, fund sales service fees and investors' funds enjoy current interest, but charge a certain liquidation fee.
After the liquidation, the fund shares held by investors will be converted into cash according to the net value before liquidation and returned to investors after deducting the liquidation expenses. If the net value of the fund is lower than the cost of the investor's position before liquidation, the investor will lose money; On the contrary, if the net value before liquidation is higher than the investor's position cost, the investor will make a profit.
In addition, etf funds also have the following characteristics:
1, arbitrage in different markets
When the etf price in the market is greater than the net value, that is, the fund premium, retail investors can buy a basket of stocks from the secondary market, then convert them into etf fund shares in the primary market according to the net value, and then sell ETFs at high prices in the secondary market to complete arbitrage; When the etf price in the market is less than the net value, that is, when the fund is discounted, retail investors can buy etf fund shares at a low price in the secondary market, then redeem their shares in the primary market at the net value, and then sell them in the secondary market to complete arbitrage.
2. Diversify investment and reduce investment risks.
Buying an etf is equivalent to buying an index portfolio. The increase in the number of targets can reduce the impact of the fluctuation of a single target on the overall portfolio, and at the same time, it can reduce the fluctuation of the portfolio through the different effects of different targets on market risk.
3, the cost is low
There is no subscription fee and redemption fee for etf funds traded in the market. The transaction fee is charged according to the trading commission of the securities company, and there is no stamp duty. Different securities companies have different commission rates, which are generally three ten thousandths of the turnover.
4. The corresponding index components are highly transparent.
Etf adopts passive management and completely copies the constituent stocks of the index into a fund portfolio. The fund's shareholding is quite transparent, which makes it easier for investors to understand the characteristics of the portfolio and fully grasp the portfolio situation.