The reason for this is that some local tyrants always apply for or redeem1100,000 yuan, resulting in the cash in the fund assets being less than 5% of the regulatory requirements. Fund managers must sell stocks or bonds as soon as possible to make up for this 5% loss. If the price of securities falls sharply due to a large number of sales, all fund holders will follow suit, which is of course unfair to most people who don't want to redeem.