Selling occurs between investors, which means that investors transfer their fund shares to another investor in the secondary market, and this fund share still exists for the fund management company.
If you want to redeem the fund, investors need to submit an application within the specified time on the same day (T day), which can generally be handled at the redemption outlets on T+2. At the same time, investors can also apply for redemption by phone or website.
Then, how to calculate the price when the fund is redeemed? Fund redemption follows the principles of "unknown price" and "share redemption".
"Unknown price" means that the redemption price is calculated according to the net value of fund shares on the day of application. The principle of "share redemption" means that investors apply for redemption according to the number of shares. For example, investors can apply for redeeming 50,000 yuan funds instead of redeeming 50,000 yuan funds.
Due to the principle of "unknown price" in fund redemption, investors do not know exactly what price they will trade at when filling out redemption applications (including online instructions). In other words, investors can't know exactly how much cash their fund shares can be converted into when they are redeemed.
Based on this principle, the redemption timing sometimes affects the final redemption price. Some experts in the industry suggest that investors should decide whether to redeem the fund from 2 pm to 3 pm that day, because the fund transaction ends at 3 pm every day, and at this time, the net value of the fund share of the day can already be estimated. Redemption applications submitted after 3 pm shall be calculated according to the net value of fund shares of the next day.
The following are specific fund redemption techniques:
First, look at the market outlook before operation: If you want to redeem stock funds, you can first look at whether the stock market will develop into a bull market or a bear market, and then decide whether to redeem and make a choice on the timing.
Second: it can be transformed into other products first; Converting high-risk fund products into low-risk fund products is also a kind of redemption, such as converting stock funds into money funds. Doing so can reduce the cost.
Third: regular fixed redemption. Like regular investment, regular fixed redemption can not only manage daily cash, but also stabilize market fluctuations.