Will be liquidated. If the fund continues to fall, it will be closed. When the scale of fund assets is less than 50 million for 20 consecutive trading days, or the number of fund holders is less than 200 for 20 consecutive trading days, the liquidation condition will be triggered.

After the fund is liquidated, the remaining assets of the fund will be distributed to investors according to the share held by investors. The probability of fund liquidation is very small. When the fund performance is too poor to continue to operate, the fund company will find ways to save itself.

Extended data:

It is generally stipulated in foreign countries that the liquidation of funds requires the permission of the competent authority or must be filed with it. For example, in Britain, after the liquidation of open-end funds, the issuance, sale, redemption and cancellation of shares will be stopped, and the registration of share transfer will no longer be handled. Without the approval of the directors, the registration of shareholders may not be changed. In addition to liquidation interests, fund business will no longer be carried out. The fund manager shall announce the notice of starting liquidation and notify the shareholders in writing that liquidation has started.

capital settlement

Open-end funds generally do not stipulate their own duration, but in some cases, open-end funds can make liquidation decisions and end their existence through the liquidation and distribution of fund assets.

Overseas, there are several situations in which open-end funds need to be liquidated:

According to the provisions of the fund contract or the articles of association

According to Taiwan Province Province, the reasons for trust deed's termination of securities investment shall conform to the stipulations of trust deed's securities investment, unless otherwise stipulated by laws and regulations.

The resolution of the holders' meeting or shareholders' meeting is adopted.

According to British regulations, open-end funds can be liquidated by special resolution. The liquidation of open-end funds in Hong Kong also needs the resolution of the holders' meeting.

The competent authority cancels the open-end fund license.

According to the written application of the fund manager. According to British regulations, the authorized directors of fund managers apply to the Financial Services Authority (FSA) for cancellation of authorization, and with the consent of FSA, open-end funds can be liquidated.

Set improperly or become improper. According to Dutch regulations, the Ministry of Finance may revoke the license if it finds that the original application materials are wrong or incomplete or the application for establishment under the same conditions will be rejected due to changes in circumstances.

Fund managers and custodians no longer meet the statutory requirements. South Korea stipulates that trust deed can be abolished when the entrusting club (fund manager) is disqualified or dissolved, but it has not been handed over to the Minister of Finance.

④ Based on public welfare or beneficiary's interests. Taiwan Province area stipulates that if it is appropriate to terminate trust deed's securities investment for public welfare or beneficiary's benefit, China Securities Regulatory Commission may order it to be terminated.