What is a compulsory redemption fund? Compulsory redemption refers to the compulsory redemption of fund shares held by investors by managers or fund registration agencies according to established business rules when investors do not apply for redemption. Compulsory redemption clause is one of the terms in the preferred stock agreement, which requires enterprises to redeem shares from private equity investors according to certain arrangements, and is usually used for redeemable preferred stock investment.

Compulsory redemption mainly refers to the following two situations:

(1) When an investor redeems, when a certain redemption leads to less than 500 fund shares in the trading account of the consignment agency, the balance must be redeemed together;

(2) The investor's account balance in this institution is less than 500 due to other reasons (such as re-custody, non-transaction transfer, etc.). ), allowing investors to redeem less than 500 shares, but it must also be redeemed at one time.

Monetary fund compulsory redemption fee:

According to the regulations, when the cash, treasury bonds or highly liquid assets due within five trading days account for less than 5% of the fund's assets and the deviation is negative, if a single fund share holder applies for a one-day fund share of more than 1%, a compulsory redemption fee of 1% will be charged, which will also be included in the fund's assets.

Among them, the deviation of cargo base often refers to the deviation between the net asset value of the fund and the market value of the assets actually held. However, due to the fact that the goods-based assets are included in the held maturity account, and the account is measured by amortized cost method, there is a certain deviation in the actual price of assets caused by the daily risk-free expected annualized interest rate fluctuation.

Investment tips:

When there is a problem with the operation of the fund manager, he should not hesitate to redeem it. As we all know, due to the different interests pursued by fund managers and holders, it will inevitably lead to the "moral hazard" problem of fund managers. If investors find that the funds they invest in are used by managers as a tool to transfer benefits, in other words, managers should sell the funds immediately in order to seek benefits for specific people and sacrifice investors' rights and interests, and there is no need to place any expectations on them.

All redemptions are filled in the available shares. After all the redemption funds have arrived, the original bank card can be cancelled. After cancellation, you don't need to open a fund account in other bank outlets (because your fund account has not been cancelled). You just need to apply for a new trading account directly at the counter of other banks with your capital account voucher and ID card, and then apply.