Irreversibility of Fund Trading —— On the Process and Risk of Fund Trading

As an investment tool, fund has long been the first choice for investors. In the process of fund trading, many people will have some doubts, such as whether fund trading is irreversible. The following will be discussed from two aspects: the process and risk of fund trading.

Capital transaction process

First of all, we need to understand the transaction process of the fund. Investors can purchase funds through securities companies, fund sales agencies, banks and other channels. Most funds are traded at T+ 1, which means they can be bought at T+ 1. If it is sold before T+ 1, it will be unsuccessful, and it will not be sold until T+ 1. Similarly, when the fund sales organization redeems, it also needs to meet the rules for calculating the net value of the fund, which is generally T+ 1 transaction. This means that the fund's trading is not completely irreversible, as long as it is traded within the specified time, otherwise it will need to wait for the next trading day to trade.

Fund transaction risk

Secondly, we need to understand the risks of fund trading. Although the transaction of funds is not completely irreversible, there are various risks in the fund market. For example, the management ability, experience and integrity of the fund manager will affect the trend of the fund, so you should choose the right fund manager and fund type when purchasing the fund. In addition, market risk, liquidity risk and credit risk can not be ignored. When the market is in turmoil, the net value of the fund will fall. Investors need to hold it for a long time to avoid short-term risks. At the same time, they should also pay attention to the liquidity of funds and try to choose funds with good liquidity to avoid the risk that funds cannot be withdrawn in time.

abstract

To sum up, the fund transaction is not completely irreversible, as long as it is traded within the specified time, it can be concluded. However, investors must understand the risks existing in the fund market, choose appropriate fund managers and fund varieties, and pay attention to market risks, liquidity risks, credit risks and other factors in order to avoid risks and obtain better investment returns.