If you apply to sell your fund shares at the published price and get back the cash, it is customarily called fund redemption. Redemption of the fund is selling. Listed closed-end funds are sold in the same way as ordinary stocks. Open-end fund is the price for applying to sell all or part of your fund to a fund company to redeem you. The redemption amount is the number of units selling the fund multiplied by the net value on the selling day.
Redemption method
On a single open day of the fund, when the fund redemption application exceeds 10% of the total fund share of the previous day, it is a huge redemption. When there is a huge redemption application, the fund manager can choose the following two ways to deal with it:
1, fully redeemed
When the fund manager thinks that he has the ability to cash the investor's redemption application, he should follow the normal redemption procedure.
2. Partial redemption
The fund manager will allocate the number of redemption applications of investors at a share ratio of not less than the total unit share 10%; The investor is a redeemable part, and when submitting the redemption application, the investor shall clearly state that the redemption is postponed or cancelled. The default way for the registration center is for investors to cancel the redemption. If you choose to postpone the redemption, it will be automatically transferred to the next open day to continue the redemption until it is fully redeemed; If you choose to cancel the redemption, some applications that have not been redeemed on that day will be revoked. The application for deferred redemption is handled together with the redemption application on the next open day, and there is no priority. The redemption amount is calculated according to the net value of fund shares on the open day.
When there is a huge redemption (a detailed analysis of the huge redemption of money funds) and the payment is delayed, the fund manager will notify the investors through the methods specified in the prospectus (such as the company website, sales agency outlets, etc.) within the time specified in the prospectus. ), and explain the relevant treatment methods, and make an announcement in the media formulated by the China Securities Regulatory Commission.
The fund manager may suspend the acceptance of redemption applications according to the fund contract and prospectus; The redemption application confirmed by the accepting unit may delay the payment of the redemption money, but it shall not exceed the normal payment time of 20 working days, and shall be announced in the media formulated by the China Securities Regulatory Commission.
Redemption time
The subscription and redemption of the fund shall start within 3 months after the fund contract comes into effect, and the fund manager shall make an announcement on at least one designated media and the fund manager's Internet website (hereinafter referred to as the "website") 2 days before the specific date of subscription and redemption.
Fund redemption generally requires two working days for system confirmation and then liquidation. The fund subscription and redemption can only be said to be successful if it is confirmed by the T+2 system.
The general redemption process of open-end funds is: T day is not reported, T+ 1 has been reported, and T+2 has been completed.
The fund subscription and redemption can only be said to be successful if it is confirmed by the T+2 system. It is normal to display the uncommitted orders on the submission date (T date). Even if the order is placed around 2:50, as long as records are found in the entrusted inquiry, it will generally be submitted on the second trading day (T+ 1 day) and completed on the third trading day (T+2). And then after liquidation. Therefore, open-end funds generally take about 4 working days. Other overseas funds are generally within 10 days.
When should I redeem the fund?
Generally speaking, if your fund has any of the following five problems, it is time to consider redemption.
1, poor performance
The so-called poor performance takes a long time to compare with the same type of funds or with the performance comparison benchmark.
2. The goal has been achieved.
Every investor should have an approximate expected annualized expected rate of return and risk expectation. As long as the original goal is successfully achieved, the expected annualized expected return can be considered.
Step 3 reach a stop loss
Set the stop loss point in advance. If the fund loses money to a certain extent, it should be redeemed decisively.
4. Liquidation is urgently needed.
If you are in urgent need of cash, don't think too much about the expected annualized expected return. However, when redeeming, you can redeem the fund with more income first.
5. Scale change
Sometimes, the substantial increase of fund scale may be due to the emergence of arbitrage opportunities, which leads to the intervention of a large number of speculative funds. If the scale drops sharply, it may also be that institutional investors redeemed for liquidity needs, or redeemed for cash in anticipation of a big turning point in the market.