When there is a huge redemption of the fund, the fund manager will passively sell the stock. The logic is that the assets of the fund generally need to invest in stocks or bonds according to regulations. When there is a huge redemption of the fund, then the fund manager will sell shares to pay for the redemption of funds by investors, so this is the passive selling of the fund manager. The influence of huge redemption on the fund;

1. If there is a huge redemption of the fund, a large handling fee will be deducted. According to the provisions of the fund contract, part of the redemption fee will be included in the fund assets, resulting in a short-term rise in the net value of the fund and a long-term decline.

2. In the long run, a large number of fund redemptions will cause fund managers to be forced to sell fund investment targets to cope with the pressure of huge redemption. The substantial redemption of the fund will also lead to the continuous decline of the stock market, further aggravate the decline of the fund's net value, and further stimulate the fund holders' willingness to redeem, forming a vicious circle.