It is suggested that investors should not choose a fund with a low share to trade when choosing a fund, which can effectively avoid the risk of liquidation to a certain extent.
Liquidation shall be conducted when the fund meets the following conditions: 1, and the closed-end fund expires. Both principal and investment income will be returned to investors. 2. Open-end funds meet the liquidation conditions. 1. The net value of the fund is less than 50 million for 20 consecutive working days, or the number of fund holders is less than 200 for 20 consecutive working days. 3. The scale of new fund raising is not up to standard. Whether it is a closed-end fund or an open-end fund, there is a minimum size at the time of initial public offering, which is generally 50 million. Failure to reach it means that the fund will fail to issue and will be liquidated.