Open-end fund is the price for applying to sell all or part of your fund to a fund company to redeem you. The redemption amount is the number of units selling the fund multiplied by the net value on the selling day.
Investors can issue redemption instructions to fund companies through direct selling and consignment agencies for redemption. Although the business rules of each fund management company will be different, they can be roughly divided into the following steps:
1. Issue redemption instructions: customers can issue fund redemption instructions by fax, telephone, Internet, etc. , or visit the fund company's direct sales center or agency outlets in person.
2. Redemption price benchmark: the redemption price of the fund is the net value of the fund on the redemption day, plus the redemption fee. Suppose an investor redeems 6,543,800+copies of a fund, and the corresponding redemption rate is 0.5%;
3. Receiving redemption money: When investors redeem funds, they can't get the money on the trading day. Generally, the money will be taken out after three to five days, and it will not exceed seven days at the latest. Investors can ask the fund company to remit the redemption money directly to their bank account or send it to investors by cheque.
The redemption of open-end funds is limited by huge redemption. According to the provisions of the Pilot Measures, in a single open day of an open-end fund, when the net redemption application of the fund exceeds 10% of the total fund share, it will be regarded as a huge redemption. When a huge redemption application occurs, the fund manager can postpone the remaining redemption applications on the premise that the redemption ratio accepted on that day is not less than 10% of the total fund share. The rejected part can be postponed to the next open day, and the redemption amount can be calculated according to the net asset value of the fund on that open day. In other words, when you encounter a huge redemption, you may get a full redemption on the same day, or you may get a partial redemption on the same day, or you may delay payment. The deferred redemption money shall be paid within 20 working days. In case of huge redemption and deferred payment, the fund manager shall notify the fund investors by mail, fax or other means specified in the prospectus, explain the relevant treatment methods, and make an announcement in the designated media at the same time; The longest notice and announcement time shall not exceed three trading days of the stock exchange.
In addition, the fund manager can suspend the redemption application of open-end funds in accordance with the fund contract, or suspend the redemption after obtaining the approval of the China Securities Regulatory Commission. In the meantime, you can't redeem it.