What is the huge redemption fund?
Literally, the huge amount of fund redemption means that the amount of fund redemption is relatively large. When the net redemption amount of an open-end fund exceeds 65,438+00% of the fund size on the current day, the net redemption application on a single open day refers to (fund redemption application+fund transfer-out application in fund conversion)-(fund subscription application on the current day+fund transfer-out application in fund conversion).
When there is a huge redemption of the fund, it generally has no impact on the interests of investors, but the fund manager can postpone the remaining redemption applications or accept full redemption on the premise that the redemption ratio of the day is not less than 10% of the total fund share of the previous day.
What does it mean to have a huge redemption of the fund?
The huge redemption of funds does not mean anything, because funds are different from stocks and will not be affected by the relationship between supply and demand. It is mainly the investment target that can affect the fund's increase, that is to say, the investment direction will affect the meaning of the fund, but it should be noted that when there is a huge redemption of the fund, the management fee, custody fee and redemption fee of the fund will be deducted from the fund's net value. When there is a huge redemption of the fund, the net value will decrease after deducting a certain percentage of management fees and redemption fees.
However, in the long run, when there is a huge redemption of the fund, it will force the fund manager to sell the fund investment target to a certain extent, and there will be pressure to pay a huge redemption. Therefore, when the fund is redeemed, it may also lead to a decline in the stock market, and when the stock falls, it will aggravate the decline in the net value of the fund.
When the fund loses money, investors will not be optimistic about the fund, but will redeem the fund and enter a vicious circle. Therefore, fund companies will set some rules to avoid this situation. According to the regulations, when there are huge redemptions of open-end funds in succession, the fund management company can suspend the acceptance of redemption applications according to the provisions of the fund contract; Accepted redemption applications can delay the payment of redemption money, but the normal payment time cannot exceed 20 working days.