Under normal circumstances, open-end funds are open for subscription and redemption at the same time, which means that you can subscribe and redeem at any time. It is only open for redemption, which means that you cannot subscribe for the fund now. But you can redeem it if you already hold the fund.

Of course, if all the stocks held by a fund plummet and everyone redeems them in large quantities, in this case, the plummeting stocks cannot be sold and cannot be converted into cash. At this time, the fund manager is likely to close the fund. Redemption status, so that the citizens are trapped. Therefore, buying funds is also risky.

Extended information:

Redemption procedure

The fund adopts the "share redemption" method, and the redemption price is calculated based on the net value of the fund unit on day T. , Calculation formula:

Total redemption amount = Redemption shares × Net value of fund shares on the day of redemption

Redemption fee = Total redemption amount × Redemption rate

Redemption amount = total redemption amount – redemption fee

If the investor chooses the back-end subscription mode when subscribing, the redemption share is calculated as follows:

Total redemption amount = Redemption shares × Net value of fund shares on the day of redemption

Back-end subscription fee = Redemption shares × Net value of fund shares on the day of subscription Total redemption amount Processing method: The redemption amount is calculated by multiplying the actual confirmed effective redemption unit by the net value of the fund unit on the day of application and deducting the corresponding fees, rounded to two decimal places, and the assets represented by the rounded part belong to the fund.

Example: An investor redeems 10,000 fund shares of the Fund and the holding time is one and a half years. The applicable redemption rate is 0.25%. Assume that the net value of the fund shares on the day of subscription is 1.05 yuan. The net value of the fund share on the day of return is 1.25 yuan, and back-end charging is adopted (back-end charging refers to a payment model in which investors do not need to pay any handling fees when purchasing a fund, but pay subscription and subscription fees when applying for fund redemption), then ：

Total redemption amount=10,000×1.25=12,500 yuan

Back-end subscription fee=10,000×1.05×1.0%=105 yuan

Redemption fee= 12,500×0.25%=31.25 yuan

Redemption amount (net value of fund shares on the day) = 12,500-105-31.25=12,363.75 yuan

That is, the investor redeems 10,000 fund shares, using With the back-end charging method, you can get the redemption amount of 12,363.75 yuan. If the subscription fee has been paid at the time of subscription, then "redemption amount (net value of fund shares on the day) = 12,500-31.25 = 12,468.75 yuan."

Baidu Encyclopedia-Fund Redemption