Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. According to the relevant laws and regulations of China Fund, if the net asset value of the fund is less than 50 million yuan for 60 consecutive days, or the number of fund share holders is less than 200 for 60 consecutive days, the fund manager has the right to announce the termination of the fund after being approved by the China Securities Regulatory Commission.
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Will the principal of the fund be completely lost?
Theoretically, there is a risk of total loss of the principal of the stock, such as bankruptcy of the company, lock-up of the stock, inability to realize it, etc. However, fund products are different. Even stock funds with stocks as the main investment target generally do not have the risk of total principal loss.
1, the rise and fall of the fund net value does not affect the fund share.
When investors buy fund products, they will convert them into corresponding fund shares according to the investment funds at the time of purchase and the net value of unit funds. For example, investors buy a fund with a net value of 1, and the fund share they buy is 1 without considering the subscription fee.
After buying a fund, the net value of the fund will change every day, with ups and downs, but no matter how the net value changes, the fund share will not change. If there is a fund dividend, the fund share may increase. Therefore, as long as the fund share exists, investors can redeem it according to the share and the net value of the fund.
2. The general fund net value will not fall to 0.
If the net value of the fund continues to fall, then the fund manager will take appropriate measures to stop the loss. If the net value falls below redemption, once the fund liquidation standard is met, the fund manager will also announce the fund liquidation.
The standard of fund liquidation is that the number of fund holders is less than 65,438+000 for 60 consecutive working days, or the net asset value of the fund is less than 50 million yuan for 60 consecutive working days.
Therefore, under normal circumstances, the net value of the fund will not fall to zero, and there will be no negative numbers and deductions.
When investing, I believe everyone has heard the saying: Don't put your eggs in the same basket, and it's the same for buying funds. We must never put all our money in the same fund. We can choose to put some money in wealth management products and the other part in funds, which can spread the risks. Everyone should be prepared to fight a protracted war when buying funds, so it is best to buy funds with spare money that is not needed for the time being, not with living expenses.