Does the fund liquidation mean a loss?
Fund liquidation does not necessarily mean that investors have lost money, because there are many cases of fund liquidation, such as closed-end fund liquidation, which may be because liquidation will be carried out without extending the duration of the closed-end period after expiration. However, closing the position at this time does not mean that the fund has investment losses, but may have made money.
Several situations in capital settlement:
1. When a closed-end fund needs to be liquidated at maturity, the principal and investment income will be returned to the investors, so as long as the fund has no investment losses, liquidation will not cause losses to investors.
2. Open-end funds meet the liquidation conditions, and the net value of the fund is less than 50 million for 20 consecutive working days, or the number of fund holders is less than 200 for 20 consecutive working days, which may lead to losses for investors.
3. The scale of the new fund raising is not up to standard, and the full refund is equivalent to the fact that investors have neither made money nor lost money.
After reading the above introduction, I believe everyone has a more comprehensive understanding of whether the liquidation of funds means losses. Fund liquidation may or may not be a loss, so it cannot be generalized.