Funds are a popular financial management tool. Fund investment is relatively simple, but sometimes investors may face situations where they are unable to redeem the funds. So why can’t all funds be redeemed? What are the available shares?

Why can’t all funds be redeemed?

1. There is a minimum holding period for fund redemptions. In order to facilitate management and reduce risks, some funds may set a minimum holding period for fund shares. Investors can only redeem the fund after holding the fund for a period of time.

2. The fund faces huge redemption risks. Huge redemptions may cause fund companies to face cash flow pressure and asset adjustment difficulties, affecting the normal operation of the fund and the income of long-term holders. Therefore, when a fund faces a huge redemption, it may choose to handle investors' redemption applications by allocating the redemption amount proportionally.

3. Fund redemptions are suspended. In the event of force majeure, exchange closures, abnormal market fluctuations, etc., the fund company may suspend acceptance or delay redemption applications. In this case, the specific announcement of the fund shall prevail.

What are the available shares of the fund?

The available shares refer to the fund shares that investors can apply for redemption. There may be a difference between the fund’s available shares and the total held shares. The reasons may be as follows:

1. The fund adopts a T+1 redemption system. When investing in a fund, you need to wait for the second trading day after the fund shares are confirmed before you can redeem them, which may result in differences between available shares and total held shares.

2. Fund dividends. If investors choose cash dividends, the dividend amount will be transferred directly to the investor's bank account without affecting the available shares. If investors choose to reinvest dividends, this will increase the total holding shares. These newly arrived shares may need to be held for a period of time before they can be redeemed, which may cause the available shares to be different from the total shares.

The answer to why all funds cannot be redeemed is as follows. I hope it can help you. The liquidity of the fund depends on the assets invested. If the assets invested by the fund are not liquid enough, the fund cannot be redeemed in a timely manner.