The liquidation of the fund is not necessarily catastrophic. Fund liquidation is generally due to two reasons. On the one hand, the size of the fund is not up to standard, and on the other hand, the number of holders is not up to standard. These two reasons are not necessarily that the fund has lost a lot.

Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. According to the regulations, if the net value of the fund is less than 50 million for 60 consecutive days, or the number of fund share holders has not reached 200 for 60 consecutive days, the fund will be liquidated and terminated.