When a fund is liquidated or facing liquidation, the relevant investors are all "blue skinny mushrooms" and regret how they bought such a fund. Instead of complaining, it is better to find out what the fund liquidation means. I know what to do as a retail investor after the fund is closed, and how to minimize or recover the losses!

What does capital settlement mean?

Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. The liquidation time is stipulated in the fund contract when the fund is established. The holders' meeting may modify the fund contract and decide the liquidation time of the fund.

Therefore, everyone should understand that the liquidation of the fund does not mean that all your funds are gone, but that the liquidation with reduced net worth will greatly reduce the assets you have invested.

So, since the fund has been liquidated, is it risky? Actually, it is not, because the conditions for fund liquidation are quite harsh.

What are the conditions in capital settlement?

1, the number of fund share holders of the Fund for 60 consecutive days is insufficient 100;

2. For 60 consecutive days, the net asset value of the fund approached or fell below 50 million yuan.

First of all, the domestic population is huge, and it is almost impossible for the number of fund share holders to fall below 100 for 60 consecutive days.

Secondly, if calculated according to the net value, some funds with small assets may have a net asset value close to or below 50 million yuan due to the possibility of dividends or split during the period, but if this does not happen for 60 consecutive days, the fund will not be liquidated.

Therefore, although there are funds liquidated in the market, it is extremely rare, and investors do not have to worry too much about their own funds being liquidated.

Then, after understanding the significance and conditions of fund liquidation, how can it help our investment?

1, choose a slightly larger fund to avoid the risk point of 50 million yuan;

2. Choose popular high-quality funds in the market, so as to skip the "deep pit" of insufficient fund managers and insufficient holders 100.

What about retail investors when the fund is liquidated?

The fund is definitely quite depressed in the face of the liquidation of retail investors, but it may be better to think about the problem from another angle and there may be a turn for the better.

First of all, you should understand why this fund is facing liquidation. Is it influenced by the big environment (such as the stock market crash) or the fund manager's ability is insufficient or the fund company's qualification is not good?

If the big environment affects the performance of the fund, then we must not blindly cut the meat for high-quality funds, and wait for the rebound opportunity before making a decision.

If it is the latter two, closing the position is actually called "a blessing in disguise" for investors, because you can choose other high-quality funds to invest, so why not get rid of such inferior funds as soon as possible? Therefore, this requires retail investors to have a good attitude and choose high-quality funds, thus saving the day.