How much will be lost in fund liquidation?
If it is a short-term financial fund such as a money fund, it has good liquidity and can often be purchased and redeemed at any time, and the income is relatively stable. The liquidation of such funds will not have any impact on investors.
If a stock fund has to close its position due to long-term loss of performance, it is equivalent to entering the market at a high level and leaving at a low level, and it can only be forced to cut its meat.
For closed-end funds, it is a good thing that the fund is liquidated at net value because of discount.
What about retail investors when the fund is liquidated?
Even if Public Offering of Fund is liquidated, it will return the money to investors according to the net value on the last day, which is equivalent to the concept of compulsory redemption. This clause is actually to protect the interests of investors.
Therefore, if Public Offering of Fund is liquidated in the future, investors need not be nervous and calm, and the money will be returned to your account intact according to the net value of the fund. After getting the money back, you can choose a new fund or buy other wealth management products.
Therefore, the liquidation of the fund does not mean that our investment share is gone, but will be redeemed by investors according to the closing net value of the last trading day before liquidation, which is equivalent to compulsory redemption. This will have an impact on our long-term investment, especially in the absence of alternative targets. Therefore, we should avoid small-scale funds when choosing funds.