Huge redemption means that when the net redemption amount of an open-end fund (the balance after deducting the total number of redemption applications) exceeds 10% of the fund size, and the redemption acceptance ratio is not less than 10% of the total fund size, the fund manager can suspend the processing of the remaining redemption applications. At this time, fund investors need to choose between continuous redemption and discontinuous redemption (also called cancellation redemption).
If continuous redemption is selected, in the case of huge redemption, investors will choose to redeem the deferred redemption application in turn on the next fund open day.
If you choose discontinuous redemption, in the case of huge redemption, investors will give up redemption for deferred redemption.
According to the relevant regulations, when a huge amount of redemption occurs, if the fund manager has difficulty in paying the investor's redemption application or thinks that realizing the realization of assets by paying the investor's redemption application may lead to large fluctuations in the fund's net asset value, the fund manager may suspend the processing of the remaining redemption applications on the premise that the redemption ratio accepted on the same day is not less than 65,438+00% of the total fund share of the previous day. Redemption applications transferred to the second working day do not enjoy priority, and the redemption amount is calculated according to the net asset value of the fund unit on the open day, and so on until all redemptions are made, but investors can choose to cancel some redemptions that were not accepted on that day when applying for redemption. Therefore, when applying for redemption, investors should clearly indicate whether to cancel the redemption part that was not accepted on that day, that is, choose continuous redemption or discontinuous redemption.
If the investor fails to make a choice, it defaults to continuous redemption.
In fact, these two have little impact on our ordinary investors, because we have less funds, and it will not have much impact on which one to choose when redeeming huge sums, but it will have a greater impact on large funds.