The purpose of fund freezing shares is to protect the interests of funds and investors. When the fund is faced with redemption and conversion by a large number of investors, in order to ensure the safe operation of the fund, the fund company may take measures to freeze the shares. In this way, fund companies will have more time to process these applications and avoid liquidity risks brought by redemption and conversion.
During the period when the fund shares are frozen, investors can't conduct any fund transactions, but they will still calculate and announce the fund net value every day. Only after the fund is frozen can it be redeemed and converted. During the period of fund freezing, the fund company will disclose information to investors in a timely manner, explaining the reasons, duration and other related information to ensure investors' right to know.
Generally speaking, fund share freezing is a common means of risk management. Although investors can't trade during the freezing period, the implementation of fund freezing can ensure the security of fund accounts, reduce the transaction cost and liquidity risk brought by centralized redemption and conversion, and provide investors with better investment protection.