Why can't the fund be fully redeemed?
When we buy a large share of the fund, the fund company will distribute the share not exceeding 10% of the total fund to the investors who apply for redemption in proportion. In other words, if it exceeds 10%, we may not be able to redeem it all at once.
In this case, we generally have two solutions: redemption extension and redemption cancellation. Redemption postponement means that the share that cannot be redeemed is postponed to the next open day, and redemption cancellation means that the redemption application that exceeds the share is cancelled directly. If investors want to continue the redemption, they need to resubmit the redemption application on the next trading day.
Since the total assets of the money fund include principal, expected income carried forward and expected income not carried forward, we can only redeem the first two parts when applying for redemption, and the expected income not carried forward can not be applied for redemption until it is carried forward. Therefore, this may make us mistakenly think that we have not redeemed all the shares.
In addition, many investors mistakenly believe that the estimated net value is the actual net value of the fund, which leads to the discovery that the redemption funds will be different from those shown above, which often leads many investors to mistakenly believe that the fund cannot be redeemed in full.
Generally speaking, if an open-end fund is redeemed in large amount, it needs to be redeemed in installments. It is also possible that closed-end funds cannot be redeemed.
Lesson on Fund Making Money (Fixed Investment-1 1 class) Brother Li
The fund investment method with the greatest probability of making money!
free trial