Fund liquidation means that the net value of the fund fails to meet the requirements for 60 consecutive days, and the fund will be liquidated. For different investors, there are good and bad, so what is the impact of fund liquidation on retail investors?

What impact will fund liquidation have on investors?

If it is a short-term financial fund such as a money fund, it has good liquidity and can be purchased and redeemed at any time. The expected annualized expected return is relatively stable. The liquidation of such funds will not have any impact on investors. And if it is a stock fund, but also because of long-term losses in performance and liquidation, then it is equivalent to high-level entry, low-level departure, can only be forced to cut meat. For closed-end funds, it is a good thing that the fund is liquidated at net value because of discount.

What should retail investors do when the fund is liquidated?

When choosing funds, we should avoid choosing small-scale funds and funds that have been established for a short time. This kind of fund is either unpopular because of its poor performance before, or has no historical performance to refer to and its future is uncertain. For this kind of fund liquidation, investors had better redeem it directly, even if they don't intend to redeem it directly, they should carefully consider and re-evaluate the fund.

Moreover, for investors, the realization of funds is a good thing. It is better to settle accounts early and find other wealth management products than to die. After all, it is very difficult for a fund to come back to life. At this time, it is better to choose another fund that is already excellent.