I believe that friends who are in contact with gold investment have heard of fund liquidation, so is the index fund liquidation? In order to answer this question, I have compiled the following contents. Come and have a look!

Fund liquidation refers to realizing all fund assets and then distributing the proceeds to fund holders. Simply put, the fund will no longer accept subscription and redemption, and will be dissolved. So, has the index foundation been liquidated? It is understood that index funds will be liquidated. In general, as long as the funds meet the following conditions, they will be liquidated:

1, the number of fund share holders of the Fund for 60 consecutive days is insufficient 100;

2. For 60 consecutive days, the net asset value of the fund approached or fell below 50 million yuan.

It can be seen from the conditions of fund liquidation that if a fund is liquidated, it is usually because of poor performance, so generally speaking, fund liquidation is not a good thing. However, after the liquidation of the fund, what losses will investors have? This problem needs detailed study.

The losses caused by fund liquidation to equity fund holders are huge, because investors can no longer expect its later increase and can only hold existing assets; However, if the object is a closed-end fund, because of the discount, the liquidation of the fund is not only a loss for closed-end fund investors, but also a good thing.

So, how can we avoid the risk of fund liquidation? You can refer to the following:

1, choose a sustainable index fund.

2. Pay attention to the fund scale, and try to choose a fund with a scale of 1 100 million or more.

To sum up, index funds will be liquidated as long as they meet certain conditions. When investors encounter fund liquidation, the losses they bear need to be analyzed in detail, and generally they will not suffer heavy losses. Investors should pay attention to related matters when investing in funds to avoid the risk of fund liquidation.