Fund liquidation refers to the withdrawal of the fund. Fund liquidation is mainly due to the poor performance of the fund, which can not continue to operate, or it may be caused by force majeure factors, but generally speaking, the probability of fund liquidation is small.
The so-called fund liquidation is actually to realize all the assets of the fund and distribute all the funds to the holders at this time. The liquidation of the fund will definitely have a great impact on investors, and once it is liquidated, the losses of investors are still relatively large. For example, some funds are neglected in management due to long-term losses, and certain losses will definitely be caused during liquidation, which will be calculated based on the net value at that time. Many people buy funds at a high level, so they will be broken when they close their positions.
In fact, fund liquidation refers to the behavior of companies or holders who have poor performance or are too small in scale in the market and can't continue to operate in the end, realizing the assets of the fund and then collecting all these funds from the fund holders. But although the fund is liquidated, it can be redeemed. In other words, even if the fund is liquidated, it can still get the funds estimated by the net value. However, in the case of liquidation, we must pay attention to some problems, that is, we must redeem assets when we formally make a new offer. Otherwise, when the fund is liquidated, personal assets will not be able to obtain income.
In fact, the China Foundation also has some specific regulations on fund liquidation. During the effective period of the open-end fund contract, the net asset value of the fund is less than 50 million for two consecutive months, or the number of fund holders is less than 200 for two consecutive months. After approval, the fund manager has the right to terminate the fund and then carry out liquidation. In fact, this situation is quite common in the market. If the current market trend is not good, then many fund companies may close some funds to reduce risks.
In the liquidation of open-end funds, it must be carried out in accordance with the relevant articles of association of the company, and fund holders can make decisions through the shareholders' meeting. You can decide whether to agree or not according to the written application submitted by the fund manager. Of course, if the relevant results find that the application materials are wrong, they can be rejected, and the financial department can also cancel capital settlement's authority.