1. Why is the fund liquidated?
When it comes to fund liquidation, we must first talk about mini-funds. Since the Spring Festival, the number of fund issuance has increased dramatically, and there are more and more mini-funds. The so-called mini-fund is a small-scale fund, and according to China's "Measures for the Administration of Securities Fund Operation", funds with less than 200 fund share holders or a net asset value of less than 50 million yuan for 60 consecutive working days will face liquidation.
Small scale is one aspect, and performance is also the main reference index. Long-term loss of performance, no one cares about the fund, in order to operate, the fund company has to pay back the money, which makes the fund company "make ends meet" with the profit model of collecting management fees. For fund companies, the game is "scale", and only large scale can have high returns. So liquidation is the best way to redeem.
2. What about retail investors when the fund is liquidated?
On this issue, Bian Xiao can only say that "it is the best policy to take the thirty-six measures". When choosing funds, we should avoid those small-scale, short-term establishment, or poor performance leading to upset, or insufficient historical performance as a reference. Future performance and management level are debatable.