What is the reason for the fund to suspend subscription?
When investors buy funds, they sometimes take a fancy to a fund with a good trend, only to find that the fund has suspended subscription. In this case, most people will feel very sorry and want to know the reason, and there are many possibilities. What is the reason for the fund to suspend subscription? 1 The most common reason for the fund to suspend subscription is to control the size of the fund, usually to prevent the fund from being too large. Too large a fund is not very beneficial to the operation of the fund company, which will affect the income of the fund and ultimately harm the interests of the existing fund share holders. 2 There are stocks that have been suspended and reorganized in the investment target of the Fund. Generally speaking, restructured stocks are prone to continuous daily limit stocks. In order to avoid diluting the subsequent income, the fund will also suspend subscription. The strategy of the fund is mainly innovation, and the main investment direction of some funds is innovation. Once properly operated, the benefits will be great. Similarly, in order to prevent the proceeds from being shared, they will often suspend the subscription. Most of the suspended funds are actually highly sought after by investors, so there will be a shortage of supply. Of course, a small number of them are due to unfavorable factors such as problems in fund operation. When the Fund suspends subscription and redemption, investors can go to official website to inquire about the specific reasons.