Will the liquidation of the fund be wiped out?
Fund liquidation will not lose everything. After the fund is liquidated, return the money to the people. The liquidation of the fund means that the fund does not intend to continue to manage the fund, so it is natural to return the fund to the investors of the fund. Generally, after the liquidation, the fund shares held by investors will be converted into cash according to the net value before liquidation and returned to investors.
The liquidation of the fund is actually that the fund will clear its assets and let the fund withdraw from the market. When the fund is liquidated, the investor's principal will be returned, and the remaining funds will be directly returned to the investor after deducting the liquidation expenses. In the actual investment market, once the fund is liquidated, the floating loss will become a real loss.
Although after the fund is liquidated, all the remaining assets will be realized and returned to investors. However, users need to understand that the money that can be returned is only the money after the remaining assets of the fund are realized, not the money spent when buying the fund.
Capital settlement can be divided into active and passive. Voluntary liquidation means holding a general meeting of holders, and the holders can vote. Passive liquidation means that the fund products will be liquidated if they are less than 50 million for 20 consecutive trading days. At the same time, if there are less than 200 households for 20 consecutive trading days, the positions will be closed.
In short, investors will not lose everything when the fund is liquidated. Fund liquidation actually refers to realizing all fund assets and then distributing them to holders in proportion. When its net value before liquidation is higher than the investor's position cost, the investment is profitable. If the net value of the fund is lower than the cost of the investor's position before liquidation, the investor will lose money.