However, fund redemption is based on the principle that the price is unknown, so before the fund redemption is confirmed. Investors' profits and losses will still change. Redemption before 15:00 on the general trading day shall be settled according to the net value of the day; Redemptions after 15:00 shall be settled on the next trading day.
Redemption, also known as repurchase, is aimed at open-end funds. Investors directly or through an agency request the fund management company to withdraw part or all of the investment from the fund and remit the repurchase money to the investor's account. People usually refer to funds mainly as securities investment funds.
If you apply to sell your fund shares at the published price and get back the cash, it is customarily called fund redemption. Redemption of the fund is selling. Listed closed-end funds are sold in the same way as ordinary stocks. Open-end fund is the price for applying to sell all or part of your fund to a fund company to redeem you. The redemption amount is the number of units selling the fund multiplied by the net value on the selling day.
The sales organization of the Fund includes the fund manager and the agency entrusted by the fund manager. capital investment
Investors shall purchase and redeem fund shares in the business premises where the sales organization handles the fund sales business or in other ways provided by the sales organization.
The impact of liquidity risk on financial institutions and financial system was fully demonstrated in the subprime mortgage crisis in the United States. For China, similar liquidity risks are concentrated in the field of open-end funds. Once investors' expectations change, large-scale fund redemption may lead to the liquidity risk of open-end funds, and trigger a vicious circle of "fund redemption-stock price decline-redemption amplification-stock price further decline", thus affecting financial stability. Therefore, we should be prepared to maintain the stability and healthy development of the stock market.
The Fund adopts the method of "share redemption", and the redemption price is calculated according to the net value of fund shares on T day. The calculation formula is as follows:
Total redemption amount = redemption share × net value of fund share on the redemption day.
Redemption fee = total redemption amount × redemption rate
Redemption amount = total redemption amount-redemption fee
If investors choose the back-end subscription mode when purchasing, the calculation method of redemption share is as follows:
Total redemption amount = redemption share × net value of fund share on the redemption day.
Back-end subscription fee = redemption share × net value of fund share on the day of subscription × back-end subscription rate
Redemption fee = total redemption amount × redemption rate
Redemption amount = total redemption amount-redemption fee-back-end subscription fee