Fund liquidation refers to realizing all fund assets and returning the obtained funds to the holders. Fund liquidation is equivalent to compulsory redemption of fund shares, which does not mean that all the invested funds are lost.

Separation of fund custodian and fund manager. Public Offering of Fund products are strictly monitored by the state, and will not run away like a private financing platform. The knowledge fund manager will force investors to sell the fund assets and return the money sold to the holders.

Second, why should the fund be liquidated?

1. expiration of the contract: when the fund is established, the contract stipulates that it will be liquidated at maturity.

2. Holder's voting: the fund share holders' meeting voluntarily decides to terminate the fund contract and then liquidate it.

3. Compliance liquidation: it does not meet the regulatory requirements.

4. Passive liquidation: the fund scale is too small, which triggers the "red line" of liquidation, that is, the number of fund share holders is less than 200 for 60 consecutive working days, or the net asset value of the fund is less than 50 million yuan for 60 consecutive working days.

There is a risk of liquidation if the size of the fund initiated is less than 200 million yuan after three years of establishment, and there is no risk of liquidation if the size of the fund is less than 50 million yuan within three years of establishment.

3. What should I do if the fund is liquidated?

Generally speaking, there is a period of time from the announcement of liquidation by the fund company to the formal liquidation of the fund. During this period, investors can directly redeem the fund or convert it into the products of the same fund company.

If you do nothing, you can only wait for the fund to be liquidated. The liquidation process of the fund ranges from a few days to several months, and investors may also bear the liquidation expenses, so it is best to redeem the fund to be liquidated directly.

Generally speaking, fund liquidation is not a good thing, but there is no big loss. Just redeem the fund as soon as possible. If you want to avoid buying funds that are about to be liquidated, you can pay attention to funds with larger funds.

Fourth, there will be an announcement in the fund liquidation, and at this time, you can also redeem the stop loss in time.

From the announcement of fund liquidation to formal liquidation, this period is about 30 days (generally about 30 days, depending on the announcement of fund companies). During this period, investors can also apply for redemption to recover some losses. Once the fund liquidation begins to enter the procedure, the time is uncertain and it cannot be redeemed. How much investment remains after the final liquidation is also unknown.