The redemption of private equity funds needs to be applied several working days before the opening day, and then the specific redemption amount is calculated according to the net value of the opening day. The following is how Haitong Private Equity Fund redeemed the bonds raised by Bian Xiao. Welcome to read and share. I hope you will like it.

How Haitong Private Equity Fund Redeems Bonds

Most private placements have a 1 closure period of at least 6 months, and redemption is generally not allowed during the closure period, or a higher rate (3%) is required for redemption, and the redemption fee is waived after the closure period. If SZITIC series cannot be redeemed within 6 months after subscription, the transition period is from 6 months after subscription to 1 year, and the redemption rate is 3%. There is no redemption fee after the closure period of 1 year. Some private equity funds are determined by time, and the redemption fee is 1.5% within two years after the trust plan is established, and it will be zero after two years. In the industry, only a few private equity products do not charge redemption fees. It is worth mentioning that products are not redeemed every day after the closed period, and need to be redeemed on the designated redemption date, usually once a week, twice a week or once a month.

What should I do before redeeming private equity funds?

1, a "physical examination" for private equity funds.

Physical examination private equity funds mainly assess the current development stage of the company and the status of the investment and research team. As we all know, private equity companies, like other companies, have to go through different stages of development, such as introduction, growth, maturity and recession. Different development stages will affect the net value of products to some extent.

2. Determine the redemption period according to the market and style.

Except for a few private placements that can effectively stabilize market fluctuations for a long time, the net value of most private placement products follows market fluctuations. Therefore, before redeeming private equity funds, it is necessary to seriously consider the matching degree between market evolution and private equity style.

During the redemption period, changes in the market will have a profound impact on the net worth. For large investors with a starting point of 6,543,800 yuan, there is a big difference between redeeming one month earlier and redeeming one month later. From the historical experience, wise investment first needs to be involved at a better time. If you buy at a higher price, it may take a long time to make up for this process. Therefore, if the overall market valuation is too high, investors can consider whether they should redeem it, and when the overall market valuation is low, firm holding may be the best strategy.

3. Carefully sort out the contract details.

Generally speaking, the redemption of private equity funds needs to be applied several working days before the opening, and then the specific redemption amount is calculated according to the net value on the opening day. After redemption, it takes several trading days for the funds to enter the investor's account, which requires a good time lag for investors who switch private placement products.

Is it good or bad to redeem bonds?

The quality of bond payment is directly related to the market price and future value of bonds.

If the redemption price of bonds is greater than the current transaction price of bonds in the market, it is good for investors, and vice versa.

However, if there is a good trend of bond prices in the future, which can bring more benefits to investors, then bond redemption is bad.

What does it mean to redeem bonds?

Bond redemption refers to the bond issuer's behavior of repurchasing its unexpired bonds at the reference price specified in the bond issuance instructions due to the occurrence of some agreed matters at or before the maturity of the bonds.

Is it financing or investment to redeem bonds in advance?

Early redemption literally belongs to financing.

1 Early redemption is basically because the market price is lower than the issue price (with deferred attribute), which is very beneficial to the issuance. Naturally, you can choose to redeem in advance, and investors may be forced to convert debt into equity.

The actual early redemption is also accompanied by the "investment" attribute. For example, if the market interest rate drops sharply, the bond issuer will lose money, so it will be redeemed in advance and then reinvested.

Therefore, whether early redemption is financing or investment can be judged according to the purpose and demand, rather than a fixed definition.