Fund liquidation refers to the situation that the fund's assets are cleared and thus withdrawn from the market, that is, the fund withdraws from the market. When the fund is liquidated, many investors will be concerned about whether their principal can be returned, so will the fund be liquidated?

Will the principal come back when the fund is liquidated?

The fund liquidation principal will be refunded, but the full refund is not guaranteed, only the amount converted from the holding shares will be refunded. Generally speaking, after the fund is liquidated, the bank will refund some funds according to the fund share.

Of course, fund liquidation does not return the principal immediately, because the process of fund liquidation is long and takes a long time, so investors need to wait for a while to get their money back. Generally speaking, the shortest time for a liquidated fund to return money to investors is two or three months, and the longest time may be six months.

It takes up to 3-4 trading days to sell or redeem a normal fund, so when a fund is facing liquidation, investors can sell or redeem the fund before liquidation, so that they can not only get the money quickly, but also make some other investments with the money.

Conditions for fund liquidation:

1. The asset size of the fund is less than 50 million for 20 consecutive trading days.

2. The number of fund holders is less than 200 for 20 consecutive trading days.

Of course, fund liquidation rarely happens, but investors should also be careful. Don't choose a fund with small scale and poor performance, because the risk of liquidation is relatively high.