Fund liquidation refers to the mechanism that will trigger fund liquidation when the fund falls to a certain proportion. Fund liquidation, also known as fund liquidation, refers to the fund manager's liquidation of fund property according to the contract or when it is terminated for legal reasons. Then, can the capital settlement model be recovered? Let's get to know capital settlement first. Can you get the money back?

Can I get the fund settlement money back?

The fund liquidation money can still be recovered, but there is no guarantee that all the money invested in the fund will be recovered. Under normal circumstances, the fund liquidation will deal with the fund assets, realize all the fund assets, and then distribute certain funds to the original fund holders in proportion. Therefore, how much money can be recovered from fund liquidation mainly depends on the realization of fund assets and the agreed proportion. In fact, the liquidation of the fund will cause certain losses to investors anyway.

In the case of fund liquidation, fund decline does not mean liquidation, and fund liquidation needs to trigger certain conditions, as follows:

1 The price of the on-site fund is lower than that of 0.3 yuan, which means that the fund may be liquidated and delisted.

The fund will face liquidation when its total assets are less than 50 million yuan for 20 consecutive trading days.

3 If the number of shareholders is less than 200 for 20 consecutive working days, the fund will face liquidation.

For closed-end funds, when the fund manager fails to apply for extending the duration after the duration ends, the fund will be liquidated.

When the fund is liquidated, the money of the retail investors will be returned.

After the liquidation of the fund, investors can wait for the settlement. At that time, the fund company will refund the money to the investors according to the net value of the fund, but it will take a long time for the money to arrive, usually two or three months or even longer. For investors, investment funds are locked during this period, and the expected returns cannot be obtained.

Fund liquidation means that the fund manager realizes all fund assets and returns the cash to the holders. Fund liquidation can be understood as compulsory redemption of fund shares, but it is not the same as the loss of investment funds.

Capital settlement can be divided into various situations, including due liquidation, deferred liquidation and early liquidation. There are many reasons for fund liquidation, the most direct reason is that the fund scale is lower than the legal standard. When the expected return of the fund is not good, investors can easily concentrate on redemption, which will lead to a sharp decline in the size of the fund. Generally speaking, smaller funds may face the risk of liquidation.

In short, you have to bear the investment risk and the opportunity cost of the money, because if you can get it back earlier, you can invest in other things. But there is no risk of default, that is, your money will not be misappropriated. Therefore, from this perspective, the fund model is still a relatively safe investment method. Only from the perspective of default risk, liquidation is safe, and there is no guarantee that the investment will not lose money.

Therefore, if the fund is really liquidated, just wait quietly, and the money will be returned sooner or later, unless you buy a fake fund.

So what is the liquidation of the fund?

Fund liquidation is actually a process of realizing all the assets of the fund first, and then distributing all the realized funds to the fund share holders.

Simply put, it is to exchange all the money raised by everyone to set up a fund for cash and return it to everyone, but this process does not necessarily lead to losses. So don't worry too much about the liquidation of the fund you bought.

So, why should the fund be liquidated? Generally speaking, liquidation will occur in the following four situations: liquidation at the end of operation, trigger liquidation, voting liquidation and compliance liquidation.

The reason for liquidation at the expiration of the operation period is very simple, that is, the fund contract has expired, and all the shares naturally expire and are returned to the fund holders.

Triggering liquidation is generally because the fund does not meet the relevant regulations, triggering liquidation rules and forcing liquidation.

For example, in the liquidation rules, the net asset value of the fund is less than 50 million for 60 consecutive days, and the fund withdrawal rate reaches 20%. Anyone who touches the relevant rules will either be forced to close his position or need to vote at the holders' meeting before making a decision.

There is also voting liquidation, that is, fund holders hold a general meeting and vote to decide whether to liquidate the fund.

Compliance liquidation, the fund failed to meet the regulatory requirements and was forced to liquidate.

What impact will fund liquidation bring to us? There are only two kinds of results, either gain or lose.

If the net value of the fund you hold is higher than your purchase cost on the last day before liquidation, you will make a profit, otherwise you will lose money.

So what other choices can we make in the case of fund liquidation?

We can choose to switch to other products of the same fund company, because the liquidation process takes a long time and the funds will be locked in the liquidation process.

In order to deal with this problem, switching to other products of the same fund company can avoid idle funds, and the same fund company will generally avoid additional subscription fees.

And early redemption. Fund liquidation will generally be announced 30 days in advance, and the fund can be redeemed during the period before liquidation. Early redemption can easily and quickly obtain the principal.

Finally, wait patiently to get back the principal after closing the position. If we believe in Buddhism, we can get back the principal after the fund closes its position, but this method needs to bear the closing expenses. During the closing period, the fund only enjoys the deposit interest rate, so this method is generally not recommended.

It is foreseeable that fund liquidation will become more and more common in the future.

For the market, this is a process of survival of the fittest. Foundations with excellent performance survived, the scale continued to increase, and foundations with poor performance were eliminated. We should treat fund liquidation rationally.