Why did it happen, capital settlement?
1. Early liquidation means that when the fund touches the liquidation line, the fund contract is terminated by the unanimous decision of the share holders, managers and custodians, and the fund enters the property liquidation.
2. Closed-end funds or principal guaranteed fund often have liquidation due. If the fund fails to meet the requirements of laws and regulations and the Fund Contract for the existence of the fund after its expiration, the fund will be terminated according to the provisions of the Fund Contract.
What if the fund liquidates my money?
First, the money invested by investors is deposited in the custodian, that is, the custodian bank, so there is no way for the fund company to keep the money itself during liquidation. Even if the fund company goes bankrupt, this part of the money is available. So whether you invest in private placement or public offering, unless you buy an informal fund without legal protection and independent custody account, there are general funds.
Second, but that doesn't mean you won't lose money. There must be something wrong with the fund that conducts liquidation activities. It may be that the expected income ability of the fund is particularly unsatisfactory, and the fund holders, that is, investors, sell the fund in large quantities, so the risk of loss is still relatively large. It takes a long time for the fund to be liquidated, and it takes a long time for the funds to return to the capital. It is impossible to make other investments, and it is also a loss to some extent.
Tips:
Choosing a fund or fund company with strong anti-risk ability, large scale and high social recognition to invest can greatly reduce risks and reduce the possibility of fund liquidation; In addition, we should always pay attention to the operation of the fund and stop losses in time before the liquidation of the fund.
I have said so much about how the fund can liquidate my money, and I hope it will be helpful to everyone. Warm reminder, financial management is risky and investment needs to be cautious.