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What does the fund redemption share mean? Does the redemption share include the principal?
Fund redemption, also known as repurchase, is aimed at open-end funds. Investors directly or through an agency require the fund management company to withdraw part or all of the investment from the fund and remit the repurchase money to the investor's account. Redemption share includes principal and income.

I. Redemption Time

The subscription and redemption of the fund shall start within 3 months after the fund contract comes into effect, and the fund manager shall make an announcement on at least one designated media and the fund manager's Internet website (hereinafter referred to as the "website") 2 days before the specific date of subscription and redemption. Fund redemption generally requires two working days for system confirmation and then liquidation. The fund subscription and redemption can only be said to be successful if it is confirmed by the T+2 system.

The general redemption process of open-end funds is: T day is not reported, T+ 1 has been reported, and T+2 has been completed. The fund subscription and redemption can only be said to be successful if it is confirmed by the T+2 system. It is normal to display the uncommitted orders on the submission date (T date). Even if the order is placed around 2:50, as long as records are found in the entrusted inquiry, it will generally be submitted on the second trading day (T+ 1 day) and completed on the third trading day (T+2). And then after liquidation. Therefore, open-end funds generally take about 4 working days. Other overseas funds are generally within 10 days.

Second, the redemption fee

The redemption fee of the Fund is collected when investors redeem the fund shares, and the balance after deducting marketing and registration fees belongs to the fund property. 25% of the redemption fee of the Fund belongs to the property of the Fund. The redemption rate of the Fund is not higher than 0.5%, which decreases with the increase of holding period.

Holding period redemption rate

1 0.5% in a year

1 year or more (inclusive) -2 years 0.25%

More than 2 years (inclusive) 0

Note: As far as redemption fee is concerned, 1 year means 365 days, and 2 years means 730 days.

Third, the redemption method

On a single open day of the fund, when the fund redemption application exceeds 10% of the total fund share of the previous day, it is a huge redemption. When there is a huge redemption application, the fund manager can choose the following two ways to deal with it:

1, fully redeemed

When the fund manager thinks that he has the ability to cash the investor's redemption application, he should follow the normal redemption procedure.

2. Partial redemption

The fund manager will allocate the number of redemption applications of investors at a share ratio of not less than the total unit share 10%; If the investor fails to redeem this part, the investor shall clearly state the extension or cancellation of redemption when submitting the redemption application. The default way for the registration center is for investors to cancel the redemption.

If you choose to postpone the redemption, it will be automatically transferred to the next open day to continue the redemption until it is fully redeemed; If you choose to cancel the redemption, some applications that have not been redeemed on that day will be revoked. The application for deferred redemption is handled together with the redemption application on the next open day, and there is no priority. The redemption amount is calculated according to the net value of fund shares on the open day.

When there is a huge redemption and the payment is delayed, the fund manager will notify the investors through the methods specified in the prospectus (such as the company website, sales agency outlets, etc.) within the time specified in the prospectus. ), explain the relevant treatment methods, and make an announcement in the media formulated by the China Securities Regulatory Commission.

The fund manager may suspend the acceptance of redemption applications according to the fund contract and prospectus; The redemption application confirmed by the accepting unit may delay the payment of the redemption money, but it shall not exceed the normal payment time of 20 working days, and shall be announced in the media formulated by the China Securities Regulatory Commission.

Four, the fund classification standard

First-class classification standard

First, carry out primary classification, and then carry out secondary or tertiary classification according to the situation. The first-level classification is based on the Measures for the Operation and Management of Securities Investment Funds promulgated and implemented by China Securities Regulatory Commission on July/KLOC-0, 2004. Article 29 of the Measures stipulates that fund contracts and fund prospectuses shall specify the types of funds in accordance with the following provisions:

1, of which more than 60% of the fund assets are invested in stocks, which are stock funds;

2. More than 80% of the fund assets are invested in bonds and bond funds;

3. Money market funds that only invest in money market instruments;

4. A hybrid fund is one that invests in stocks, bonds and money market instruments, and the ratio of stock investment to bond investment does not meet the provisions in Item (1) and Item (2);

5. Other fund categories specified by China Securities Regulatory Commission.

Secondary classification standard

1. Equity funds: funds that mainly invest in stocks, and more than 60% of the fund assets are invested in stocks.

2. Index funds: funds that mainly invest in index stocks.

3. Partial stock funds: stock investment is the main investment, and the median allocation ratio of stock investment is greater than that of bond assets.

4. Stock-bond balanced fund: the allocation ratio of stock assets and bond assets can be flexibly allocated according to market conditions, and the difference between the median allocation ratio of stock investment and the median allocation ratio of bond assets is generally less than 5%.

5. Partial debt funds: mainly invest in bonds, and the median allocation ratio of bond investment is greater than stock assets.

6. Bond funds: including two types of funds. One is a pure bond fund that does not invest in stocks, and the other is a fund that only subscribes for new shares but does not actively invest in stocks.

7. Capital preservation fund: a fund that guarantees that investors can at least get all or part of the investment principal when the investment expires, or promises a certain percentage of return.

8. Money fund: a fund that mainly invests in money market instruments.

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