First, the principle of fund redemption
Fund redemption refers to the process that investors sell their fund shares to fund companies, so as to obtain the corresponding redemption money. Fund redemption income = fund share × net redemption value, where the net redemption value is the net asset value of the fund divided by the fund share. When investors redeem funds, they need to consider factors such as fund share and redemption net value.
Second, the possible problems in fund redemption
1. deadline
Many fund products need to be held for a certain period of time to be redeemed. If this requirement is not met, there will be a problem that the fund cannot be redeemed.
2. Decline in net asset value
When the net asset value of the fund falls, investors may lose money when redeeming it, so many people will choose to redeem it out of speculation when the net asset value of the fund falls. However, the redemption operation itself is not the solution to the problem. When the net asset value falls, we should master certain risk control strategies.
3. Market changes
Market changes are also one of the reasons why funds cannot be redeemed. Although the fund can be redeemed, it is likely to cause losses due to excessive market volatility. Therefore, when the market fluctuates greatly, you should choose the appropriate stop-loss strategy to protect your investment.
Third, the solution of fund redemption.
1. Plan ahead
Planning in advance is the best way to avoid the problem that funds cannot be redeemed. Before investing, you should clearly understand the redemption rules of fund products, such as holding time and redemption service time requirements. At the same time, we should seriously consider the source of investment funds and avoid redemption before maturity. Pay attention to the change of net asset value when redeeming, and choose the right time to redeem.
2. Use stop-loss strategy
Stop loss strategy is an effective risk control method, which can effectively reduce the losses of investors. When the net asset value of the fund falls, you can use the stop-loss strategy to get the adjusted profit in time and limit the loss. Setting the stop loss point correctly is very helpful to avoid the problem that the fund cannot be redeemed. The setting of stop loss point should be determined according to the risk tolerance of investors. Too high or too low a stop loss point may affect investors' returns.
Choose the right time
The timing of fund redemption determines the return of investors. Redemption operation should be carried out when the net value of fund products is high, so as to obtain greater income. In addition, investors who invest in long-term products should pay close attention to market changes and choose the right time to redeem them in time.
Four. conclusion
Fund redemption is an important way of fund investment income, but in practice, it will also encounter the problem that fund redemption cannot be realized. This paper analyzes the principle of fund redemption, possible problems and solutions, hoping that readers can choose the right redemption opportunity, plan investment plans in advance, learn to use risk control strategies, and effectively reduce the possible loss risks.