Last week, the A-share market was changeable. With the ups and downs of the market, many graded funds have triggered a downward trend after continuous down limit, and there is an embarrassing situation that they cannot be sold. However, after the sharp rebound of the index, many investors who didn't know the truth flocked to buy the varieties that had triggered the discount, leaving many investors at a loss.
What if I can't sell it continuously?
Merger and redemption: Due to the unilateral decline of the market, the market liquidity is relatively tight, and Grade B faces the risk of not selling at the opening. In order to minimize losses, investors can buy the corresponding A shares and complete the merger and redemption in the market.
The biggest risk of merger and redemption is that the fund company refuses to redeem, but this situation has never happened in the history of the fund. One more thing, the operation of buying A shares and then merging out requires the risk that the newly added A shares may fall within two trading days. According to the merger process of graded funds, the holders of graded B can merge on T+ 1 day and redeem the parent fund on T+2 after buying A shares in the market on T-day. In the short term, the market risk is high, and the way of merging and withdrawing from buying A shares cannot completely guarantee the principal security of newly bought A shares.
It would be great if you were lucky enough to avoid the daily limit, because the leverage base was hit hard after participating in the discount. In addition, there is a way to reduce the loss. Investors can buy A before the close to save themselves, merge on the same day and redeem it the next day. However, some brokers can only merge the next day and redeem it on T+2.
If Grade B has triggered the conversion and cannot be redeemed the next day, investors still need to buy Grade A on the same day and merge it into the parent fund to participate in the conversion. In this case, it also directly participates in the conversion than the hierarchical B belt lever. Because the fluctuation risk of the net value of the parent fund after the discount is better than the daily limit of Grade B, Grade B will lose a part of the premium by directly participating in the discount.
To give a concrete example, for example, restructuring B was triggered to be discounted on July 6, and July 7 was the conversion base date, and trading was suspended on July 8 and resumed on July 9. If you don't save yourself, you will participate in the conversion according to the closing price of 0.474 on July 7, with a direct loss of 60.38%. According to the daily closing price on July 6, the loss was 64.36%.
If investors save themselves before triggering the conversion, that is, buy Restructuring A on July 3 and merge it into the Restructuring Graded Parent Fund on the same day, the additional loss can be controlled at 8.26%. If the conversion has been triggered, buy restructuring A before the close of July 6, and merge into the parent fund before the close. By July 9, the loss will also be greatly reduced.
To sum up:
1. If you still have money and buy too many B funds, you can buy a certain proportion of A funds for redemption (the proportion depends on the prospectus of the fund you bought).
2. What should I do if I can't sell the limited words? Then hang the limit order every morning until it comes out.
If you don't buy much, you don't have to come out. If it falls by a certain percentage, he will open the edition himself. Then according to the situation, he will make up the position appropriately to reduce the cost.
It is estimated that the stock market is halfway up the mountain now, so don't rush to bargain-hunting, there will be a good opportunity to enter the market.