According to Paragraph 2 and Paragraph 4 of Article 5 of People's Republic of China (PRC) Fund Law, fund property is independent of the inherent property of fund managers and fund custodians.

If the fund company goes bankrupt, the investor's money can be legally returned, because the investor's assets are kept by the custodian bank and dominated by the fund manager, which is separate from the fund company's own assets. Fund companies only sell fund products on a commission basis and do not participate in the management of fund products. Therefore, even if the fund company goes bankrupt, it will generally not affect investors' own assets.

If the fund really faces bankruptcy, the fund products managed by the fund company will be liquidated. If the liquidation conditions are not met, the CSRC will require other fund companies to take over the fund products left by the bankrupt fund company according to the circumstances. Therefore, after the fund company goes bankrupt, the first thing investors should do is to transfer all their fund shares held in the original fund company trading account to the fund company trading account they took over, that is, transfer custody to protect their own funds.

After the bankruptcy of the fund company:

1. is merged or acquired by other fund companies. After the bankruptcy liquidation of a fund company, if other fund companies acquire or take over some of their businesses, it will have little impact on investors, and investors only need to go through the formalities of transferring custody. Because the original fund products managed by the fund company may not be liquidated, from the perspective of stabilizing the market, the fund products will be designated by the management or managed by other fund companies through bidding, which will not affect investors' continued investment in the fund products.

2. No other fund companies took over. In this case, the fund products invested by investors are more prone to liquidation, and investors need to wait for the liquidation compensation of the fund company. According to the liquidation principle, the assets of the fund company are liquidated according to the net value of the fund company at the time of bankruptcy, and the money in the fund products will be settled to investors after liquidation. However, the settlement procedures in capital settlement are generally complicated and take a long time. Generally, a liquidation team is established within 30 working days from the date of termination of the fund, and the liquidation period is generally 6 months. The liquidation group may also extend the liquidation period appropriately according to the specific circumstances and make an announcement in advance.