The fund market is ever-changing, and it is common for it to rise in the morning and fall in the afternoon. What's more, the financial market has always been a place where the loss outweighs the gain, and some products will eventually be liquidated and delisted. Especially after the net loss of fund units is too large, there will be the risk of fund liquidation.

What are the conditions in capital settlement?

1 The net asset value of the open-end fund is less than 50 million yuan for 60 consecutive days, or the number of fund share holders is less than 200 for 60 consecutive days.

2. The responsibilities of the fund manager and the fund custodian are terminated, and there is no new fund manager within 6 months, which shall be borne by the new fund custodian.

Three years after the fund contract came into effect, the net asset value of the fund was less than 200 million yuan, and the fund contract was terminated.

4. Other circumstances stipulated by relevant laws and regulations and China Securities Regulatory Commission.

Just because an investor encounters fund liquidation does not mean that the principal of an investment fund cannot be recovered. After the fund is liquidated, the investment funds can still be recovered, but the amount is redeemed according to the lost funds. Fund liquidation does not mean the investor's investment loss, but the forced redemption according to the net value of a fund.

In order to reduce the situation of fund liquidation, investors should try to choose products with high reputation, large scale and many investors in the process of selecting funds, and analyze them according to comprehensive data, so as to better avoid the risk of fund liquidation.