What happens if the fund can't be bought? I believe that many people who just started to buy funds have such doubts. Why can't they buy funds? The following is a small series about why some funds can't buy it. I hope I can answer your question.
Why can't some funds buy it?
If you can't buy the fund, it may be that the fund is currently suspended, or it may be that the fund is in a closed period. If the fund is suspended, investors can only buy after the fund resumes trading. If the fund is closed, investors can only buy it after the fund is closed.
The Fund implements T+ 1, which is bought on the trading day and calculated according to the net value at the close of the buying day. The share is confirmed on the second trading day, and the income is calculated after the share is confirmed.
Why are new funds not allowed to buy?
Investors will not be able to buy the new fund in the following circumstances:
1, in the closed period.
There is a closed period when the new fund raises funds, during which investors cannot purchase and redeem, and its net value will not be updated every day. Generally speaking, the net value of closed-end funds will be announced once a week, the fastest is after 9 pm on Friday trading day.
For open-end funds, the closure period shall not exceed 3 months, that is, the fund company can open up the subscription and redemption of new funds for up to 3 months. But in practice, most fund companies have just passed 1 month. For closed-end funds, the closed-end period is different according to different products. For example, a 3-year closed-end fund has a closed period of 3 years.
After the closure period, investors can purchase and redeem.
2. Suspension of funds
During the suspension of the Fund, investors cannot purchase and redeem, and there are the following suspension situations:
Remove from the market
When the asset scale is less than 50 million yuan or the number of holders is less than 200, it will be permanently suspended, which is actually a delisting. Generally, after the liquidation, the fund shares held by investors will be converted into cash according to the net value before liquidation, and returned to investors after deducting the liquidation expenses.
Suspension of major activities
Due to the planning of major events, which may constitute a major asset restructuring, the fund company will issue a corresponding suspension announcement if it is suspended for a period of time.
Suspend trading temporarily
There is a big premium in the transaction price of the secondary market, and the transaction price obviously deviates from the net value of the fund share on the previous valuation date.
In the second and third cases, the fund suspends trading, and investors can conduct normal redemption and subscription operations after the resumption of trading.
3. Holidays
The trading hours of the Fund are 9: 30am-11:30am, afternoon13: 00pm-15: 00pm, and trading is not allowed on holidays. However, investors can entrust purchase or redemption on holidays, and their orders are submitted on the trading day and announced that evening.
4. The Fund suspends subscription.
The bigger the fund, the better. When the scale of the fund grows too fast, the stocks that meet the investment expectation of the fund are limited or the management ability of the fund manager is limited, in order to avoid idle funds and affect the expected return of the fund, the fund manager usually controls the scale by suspending the subscription.
The fund's net value fluctuates violently, or the fund has significant bad news, resulting in a continuous decline in the fund's net value. In order to prevent the large-scale redemption of the fund, resulting in the loss of fund assets, or to ensure the interests of investors and reduce risks, the subscription is suspended.
When the new fund is issued, investors' investment sentiment is high in the market. When the subscribed funds exceed the fund raising scale, listed companies will place shares in order to ensure fairness and justice, and part of the amount subscribed by investors will be sold in proportion to the placement.
Placement ratio = restricted sales scale/total number of valid subscription applications during the raising period ×100%; Confirmation amount of investor's subscription application = effective subscription application amount submitted during the raising period × placement ratio.
For example, the upper limit of the issuance scale of a new fund is 20 billion, and the final subscription amount of the investors in the market is 40 billion, so the allotment ratio = restricted sales scale/total effective subscription application during the raising period ×100% = 200/400×100% = 50%; If the subscription amount of Xiao Li is 1 1,000 yuan, the final transaction amount is = 1 1,000× 50% = 5,000 yuan.
Why funds can't be bought or sold.
1. I can't buy the fund: it may be because the fund has suspended subscription. The reasons for the suspension of subscription are: the fund is in the dividend period, because dividends will dilute the income of investors who have already subscribed, so the fund suspends subscription; It may also be that the fund manager is trying to control the scale and avoid the difficulty of changing positions and shares because of the excessive scale.
It may be because the new fund is closed. Generally speaking, most start-up funds have a three-month closure period. During the closed period, the fund company does not accept the purchase and redemption of investors, and cannot buy or sell during the closed period. You can only buy and sell before the open day.
3. Semi-open-ended funds cannot be purchased and redeemed during the closed period. For example, some funds are open one day a week and can only be purchased and redeemed on the open day.