If the fund loses money, the money will not be deducted. The worst result is that after the fund is liquidated, the shares held by investors will be converted into cash according to the net value at the time of liquidation and returned to investors. When the net value at closing position is lower than the cost of holding position, investors will lose money, and when the net value at closing position is higher than the cost of holding position, investors will make a profit.

Under the following circumstances, the fund will enter liquidation:

1. Open-end funds are eligible for liquidation. Open-end funds will be liquidated if they meet the following conditions: first, the net value of the fund is less than 50 million for 20 consecutive working days, and second, the number of fund holders is less than 200 for 20 consecutive working days.

2. 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.