In other words, when the scale of the fund is reduced to a certain extent, the fund products themselves will be forced to liquidate, and it is difficult to achieve the degree of losing all the principal.
1. At present, our main contact in the market is Public Offering of Fund.
For most ordinary investors, private equity funds are not friendly to most investors, because the investment threshold of private equity funds is relatively high, generally it takes one million yuan to start, and at the same time it needs a certain investment background. At present, the funds we have access to are basically Public Offering of Fund products, which are approved by the CSRC and run under its supervision.
2. When the scale of the fund is reduced to a certain extent, the fund will trigger liquidation.
For the fund products whose net value has not reached 50 million for 60 consecutive days, the fund manager of the fund products may apply to the China Securities Regulatory Commission for liquidation, and hereby announce the termination of the fund. Some funds have few holders. If the number of holders of fund products is less than 100, the fund manager also has the right to apply for liquidation. It is also for this reason that it is difficult for us to lose all the principal of Public Offering of Fund, because this is a very critical stop-loss step.
Third, there is basically no stock loss 100%.
Imagine that even if all the positions of a fund are stocks, the share price of a stock cannot fall by 100%, not to mention a fund with only a dozen or even dozens of stocks. For many fund products, fund managers themselves will balance risks and benefits through asset allocation. Some fund managers will allocate a certain proportion of bonds, while others will allocate a certain proportion of money funds or deposits to offset the high volatility of stocks. If the fund you hold has a similar operation, you don't need to worry about losing all the principal.
I hope my answer can help you, and you can leave me a message if you don't understand.