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How to deal with the huge redemption of funds?
Huge redemption means that when the net redemption amount of an open-end fund (the balance after deducting the total number of redemption applications) exceeds 10% of the fund size, and the redemption acceptance ratio is not less than 10% of the total fund size, the fund manager can postpone the processing of the remaining redemption applications. When fund investors apply for redemption, they need to choose the huge redemption processing method of redemption application between continuous redemption and cancellation redemption. Handling method: When there is a huge redemption, the fund manager generally has two handling methods: full redemption. When the fund management company thinks that it has the ability to pay all the redemption applications of investors, it will follow the normal redemption procedures and will not affect the interests of investors. Partial Deferred Redemption: If the fund management company thinks it is difficult to pay the investor's redemption application, or it may cause the fund's net asset value to fluctuate greatly, it can postpone the remaining redemption application on the premise that the redemption ratio accepted on the same day is not less than 65,438+00% of the total fund share of the previous day. Investors should note that the deferred redemption will be priced according to the net value of fund shares on or after the next open day. Therefore, when applying for redemption, investors should choose whether to continue redemption in the case of huge redemption in the application form. In addition, when the open-end fund is redeemed continuously, the fund management company can suspend accepting redemption applications according to the provisions of the fund contract and prospectus; Accepted redemption application may delay the payment of redemption money.