Huge fund redemption means that the net redemption amount of the open-end fund on that day exceeds 10% of the fund size, in which the net redemption application on a single open day refers to the sum of the fund redemption application plus the fund transfer-out application during the fund conversion period, and the balance after deducting the sum of the fund subscription application and the fund transfer-in application during the fund conversion period.
Faced with this situation, the fund manager can postpone the remaining redemption application or accept full redemption on the premise that the proportion of redemption accepted on the same day is not less than 10% of the total fund share of the previous day, that is, when the fund manager thinks that he has the ability to pay the investor's full redemption application, he will follow the normal redemption procedure.
Investors can choose two ways: continuous redemption or cancellation of redemption. Continuous redemption means that investors choose to redeem the deferred redemption application on the next fund open day in turn.
Then, when there is a huge redemption of the fund, do the investors who hold it earn or lose?
When the fund is profitable on the same day and the fund is redeemed, the fund share is greatly reduced, resulting in a sharp increase in the net value of the fund, which leads to a big profit for investors holding the fund. Therefore, individuals can benefit from the huge redemption of funds.
Generally, the redemption will not be restricted when the fund is sold, and the subscription amount may be restricted when it is bought. For example, some funds limit investors to only buy 65,438+million on the same day. The main reason for this situation is to safeguard the interests of fund holders and maintain the stability of fund scale.