Now many people buy funds. A fund refers to an institution or organization that manages and operates funds dedicated to a specific purpose and conducts independent accounting. So do you know the relevant restrictions on trading funds? The following small series will answer your question.
Relevant restrictions on trading funds
There are some relevant restrictions and regulations on trading funds in order to protect the interests of investors and maintain market order:
Restrictions on subscription and redemption: the fund company may set certain restrictions on subscription and redemption, such as the minimum subscription amount and the longest redemption period. These restrictions are aimed at balancing the fund management and portfolio adjustment needs of fund companies, as well as the liquidity needs of investors, and avoiding the impact of excessive daily trading on funds.
Restrictions on sales organizations and subscription channels: the sales and subscription of funds will be carried out through designated sales organizations and subscription channels, and investors need to purchase funds through legal channels. These restrictions and regulations help to protect investors from fraudulent acts by unauthorized institutions or personnel.
Why do you need to set regulations on funds?
Investor suitability assessment: The regulatory authorities in some countries and regions require sales agencies to conduct suitability assessment before selling funds to investors to ensure that investors have the corresponding risk tolerance and investment experience. This can reduce the losses caused by investors' ignorance or lack of risk awareness.
Information disclosure and investor protection: fund companies need to publicly disclose important information about the fund to investors, such as the investment objectives, strategies, expenses and risks of the fund. At the same time, regulators will supervise fund companies and provide investor protection mechanisms to ensure the transparency of the fund market and the rights and interests of investors.
What date did the fund buy before three o'clock on Friday?
Most of the funds bought before three o'clock on Friday will not be confirmed until next Monday. If Monday is a holiday, the confirmation time will be delayed. On the day of share confirmation, investors can see the profit and loss of the funds they buy, but the net value of the funds they hold is still calculated according to the net value announced at the time of purchase, that is, Friday night. In other words, the net value of funds bought before three o'clock on Friday is calculated according to the announcement that night, and the holding date will be postponed.
For funds bought after three o'clock on Friday, the fund share confirmation date is generally T+2, that is, the fund share is confirmed on Tuesday, and the fund net value is calculated according to the net value published on the evening of T+ 1 day, that is, the net value published on Monday night.
The net value of the fund is bounded by 3pm, because the trading time is 9: 30am-11:30am and1:00-3: 00pm in the afternoon, and the market opening time is only 4 hours every day. Buying before three o'clock on Friday is the net closing value on Friday, and it is also held on Saturday and Sunday, but it is useless to hold it, and it will not open on weekends, and it will not generate any income.