The fund size is less than 50 million yuan for a long time, and there is a risk of liquidation, mainly because the fund size triggers the liquidation red line.

According to the Securities Investment Fund Law, if the net asset value of an open-end fund is less than 50 million yuan for 60 consecutive days or the number of fund share holders for 60 consecutive days is less than 65,438+000, the fund manager has the right to announce the termination of the fund after the approval of the China Securities Regulatory Commission and the China Securities Regulatory Commission.

The risk of liquidation of funds below 50 million is greater. In order to prevent buying liquidation funds, don't choose funds below 50 million.

For small-scale funds, a large proportion of subscription and redemption will have a great impact on the fund.

The smaller the fund, the greater the risk of large-scale redemption, and even the liquidation of small funds.

To sum up, considering the above two points, we still try to avoid funds below 1 billion.