To put it bluntly, huge redemption refers to the situation that a fund product faces a large number of investors' redemption shares in a relatively short period of time, and the redemption share on the redemption date has exceeded 10% of the fund size. Generally speaking, investors collectively redeem a large sum of money, which exceeds the cash reserves that fund management companies can pay at any time. Therefore, the management company needs to sell assets or borrow money to raise enough cash to pay the redeemer, but the transaction price is likely to be lower than its true value, which will bring losses to the fund and investors.

For investors, huge redemption is a problem worthy of attention. It means that a large number of investors choose to redeem their fund shares in a short period of time, which may lead to problems such as cash pressure and asset sale at a discount, further affecting the operation and overall value of the fund.

When a huge redemption occurs, investors may suffer the following effects:

1. Decline in fund share price: As fund management companies need to sell assets to raise cash, this will lead to a decline in the net value of funds, thus affecting the price of fund shares. If investors sell stocks at this time, they may lose more principal.

2. Selling assets at a discount: In order to quickly meet the redemption needs of investors, fund management companies may sell assets at a price lower than the normal market value, resulting in a decline in the net value of funds.

3. Redemption restriction: In order to cope with the huge redemption, the fund management company may temporarily restrict or delay the investor's redemption request, which will bring inconvenience and loss to investors.

4. Decline in confidence: Huge redemption usually indicates that investors' confidence in the fund has declined, which may lead more investors to redeem their shares, further aggravating the problems faced by the fund and forming a vicious circle.

Therefore, investors need to know the fund size, liquidity, redemption restrictions and other information when investing in funds. At the same time, investors should choose funds with good reputation and professional experience in managing companies, and invest in different types, industries and regions in order to reduce the impact of a single fund on the overall portfolio.