1, which shows that when fund managers open positions or adjust their portfolios to realize investment income, they will not be able to buy or sell stocks or bonds at the expected price because of the relative lack of market liquidity of individual stocks. In order to cope with the redemption of investors, when the liquidity of individual stocks is poor, fund managers are forced to sell a large number of stocks or bonds at inappropriate prices.

2. The method is to formulate a liquidity risk management system to balance the liquidity and profitability of assets to meet the daily operation needs of the portfolio. Timely analyze and track the liquidity of portfolio assets, including calculating the historical average trading volume, turnover rate and corresponding liquidation cycle of various securities, and paying attention to the liquidity structure of assets in the portfolio and the liquidity matching of portfolio types.