The redemption time of short-term debt funds is generally T+0 or T+ 1, and the redemption time in transit is calculated according to normal trading days, excluding weekends and legal holidays. If the redemption time is T+ 1, the funds redeemed after 3 pm on Thursday will not arrive until next Monday. This undoubtedly increases the time in transit for fund redemption, and the expected return on investment will not be calculated for two days on weekends.
2. Avoid capital settlement.
In addition to the normal contract expiration, the fund also has the risk of passive liquidation. For example, due to the centralized redemption of investors, the net asset value of the fund is lower than the prescribed level, then the fund may face liquidation. If investors find that the size of the fund they hold is abnormal, they should also consider whether to redeem it. Once the fund is liquidated, it will be very troublesome to recover the funds.
3. Achieve the expected expected income target.
When investing in short-term debt funds, some investors will set the expected expected rate of return in advance, and once the expected return of the fund reaches the expected target, it will be redeemed in time.
4. Stop loss redemption
In the bull market, if the performance of funds held by investors has been stagnant, or the ranking of similar funds continues to be low, it is generally recommended to redeem them in time. If the market is not good and the fund continues to lose money, then it is necessary to have the courage to stop losses decisively. Capital preservation of fund investment is the most important.
The above information about when to redeem short-term debt funds is more appropriate, and I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.