Fund liquidation refers to the fund converting all equity assets in the portfolio into cash. Under normal circumstances, the fund clearance is not optimistic about the future market, or the product expires.

Another kind of fund clearance is that individual investors redeem all their funds and convert them into cash. In general, it is because they are not optimistic about the future market or need to withdraw funds.

In fact, the phenomenon of fund clearance is rare. When investors buy funds, they can basically avoid this situation by choosing larger ones.