Fund liquidation refers to the realization of all fund assets and the distribution of funds held to fund share holders, which also symbolizes the complete end of fund operation. So how can the fund be liquidated? Let's get to know each other.

How to liquidate the fund?

According to the relevant laws and regulations of China Fund, during the duration of the open-end fund contract, the conditions for the fund company to declare liquidation are as follows:

1 The number of fund share holders is insufficient on consecutive days 100;

(2) The total net assets of the fund are close to or lower than 50 million yuan for several days;

In addition to the fund company unilaterally announcing liquidation, there is another liquidation method called the shareholders' meeting to terminate the fund. That is, the fund holder votes to decide whether to terminate the fund contract. Of course, some illegal acts of the fund company itself will also lead to forced liquidation.

For a Public Offering of Fund, the total net worth of less than 100 people alive is less than 50 million yuan, indicating that the fund's operating conditions are relatively poor. Fundamentally speaking, the conditions for fund liquidation are still due to poor management and poor investment environment.