When the fund is established, the contract stipulates that it will be liquidated at maturity; Liquidation shall be carried out after the fund share holders' meeting voluntarily decides to terminate the fund contract; The fund scale is too small, which triggers the liquidation "red line" and will be liquidated.
Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. The holder will be informed of the fund liquidation. At the same time, before the fund is liquidated, the fund company will issue a liquidation announcement in advance. During this period, investors can redeem funds or convert funds to avoid losses caused by liquidation. If the investor does not redeem, it will enter the liquidation stage, during which the fund manager will no longer accept the application for subscription and redemption put forward by the investor. At the same time, fund management fees, fund custody fees and fund sales service fees will be stopped, and investors will enjoy current interest on their funds, but a certain liquidation fee will be deducted.
Transactional open-end index fund, also known as exchange-traded fund, or ETF for short, is an open-end fund with variable fund shares listed on the exchange. It combines the operating characteristics of closed-end funds and open-end funds. Investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at the market price in the secondary market. It has the characteristics of purchase, redemption and listing.
According to different investment methods, ETFs can be divided into index funds and actively managed funds. Most foreign ETFs are index funds. At present, ETFs launched in China are also index funds.
ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and fund share net value trend are basically consistent with the tracked index. Therefore, investors buying and selling an ETF is equivalent to buying and selling the index it tracks, and can get basically the same income as the index. Usually, it adopts a completely passive management mode, aiming at fitting an index, which has the characteristics of both stocks and index funds.