In fact, not only we, but also ordinary open-end funds will go through many stages in their lives. As fund investors, we have witnessed or participated in the lives of many funds. Are you familiar with their "basic journey"?
From 0 to 1, a fund's "life story" starts from the issuance period.
Issue period, also known as offering period or subscription period. Generally speaking, after the issuance of funds is approved by the CSRC, the fund manager can make a fundraising plan and determine the time to start fundraising.
According to the regulations, the maximum time for raising new funds shall not exceed 3 months. However, as long as the conditions for the establishment of the fund are met, the fund may be terminated early. During the fund raising period, you can refer to the publicly disclosed prospectus, fund contract, product information summary, etc. Learn more about your favorite funds and choose the right fund products to subscribe according to your financial plan and risk preference.
You can rest assured that since the fund has not been formally established, the net value of the fund will not fluctuate with the market during the subscription period. At the end of the subscription period, the fund company will convert the interest generated by the fund during the raising period into fund shares and return them to investors.
The issuance period of the fund is the process of the birth of the fund, and the establishment of the fund is an important moment of "breaking out of the shell".
There are two kinds of raising results of new funds: establishment or non-establishment. The establishment of ordinary Public Offering of Fund needs to meet a series of conditions. Among them, the most important two are:
1, the number of subscribers needs to exceed 200;
2. The subscription share is not less than 200 million copies, and the subscription amount is not less than 200 million yuan.
(Sponsorship funds are not subject to this restriction)
This important node can be understood by fund investors by looking at the announcement that the fund contract is effective. In the effective announcement of the fund contract, investors can see the effective subscription share, benefit transfer share and employee subscription of the company to which the fund belongs.
After the formal establishment, the fund contract of the open-end fund may stipulate that the fund will enter a closed period of no more than 3 months. At this stage, many investors are relatively unfamiliar.
During the closed period, investors can't make purchase, redemption, fixed investment and conversion, and can only see the updated fund net value of Zhou Du. Therefore, you don't have to worry if you see that the net value of the new fund is not updated daily. Just look at the information covering the change of net worth for one week every Friday night!
In fact, it is not accurate to say that the open period is the next stage of the closed period. Because according to the regulations, the closed period and the open period can overlap in time, the closed period cannot exceed 3 months after the establishment of the open-end fund, and the open period cannot exceed 6 months after the establishment of the fund.
During this period, the fund manager will gradually make the investment ratio of the fund conform to the relevant provisions of the fund contract. Of course, under different market conditions, different foundations adopt different strategies during the opening period. For example, for actively managed funds, fund managers may choose the strategy of slowly opening positions in a volatile market. If the fund manager adopts the strategy of slowly opening positions, everyone may feel that the net value fluctuation is far lower than expected.
It is worth noting that after the closure period, even if the fund is still in the process of opening positions, investors can see the daily updated fund net value and apply for redemption during this period.
Most funds in the market are in the survival stage, that is, in normal operation.
At this stage, the foundation is operated and managed according to the contract, and the fund manager will adjust the portfolio of stocks or bonds in time in order to bring excess returns to the holders. During the fund's existence, investors can see the net value update every day, check the regular reports to understand the fund's operation and the fund manager's point of view, apply for redemption according to the market and capital conditions, and enjoy the dividend right when the fund pays dividends. They can also participate in the fund share holders' meeting and participate in the fund operation rules adjustment resolution.
Many foundations have experienced a long duration and lived "very long"; A few funds will go into liquidation after a period of existence.
The so-called "fund liquidation" means that the fund manager realizes all the assets of this fund and returns the cash to the holder. It can be understood that the fact that the fund company no longer runs this fund does not mean that the money is wasted, nor is it necessarily a loss.
According to the regulations, if one of the following conditions is met, the termination clause of the fund contract will be triggered, and the fund will trigger liquidation adjustment:
1, the fund share holders' meeting decided to terminate;
2. The responsibilities of the fund manager and the fund custodian are terminated, and there is no new fund manager or new fund custodian to undertake within 6 months;
3. Other circumstances stipulated in the fund contract;
4. Other circumstances stipulated by relevant laws and regulations and China Securities Regulatory Commission.
As can be seen from the above liquidation conditions, most high-quality funds rarely face the risk of liquidation, and in the process of fund liquidation, they will also protect the interests of investors to the greatest extent. You don't have to worry too much ~
The above is the life span of ordinary open-end funds! Open-end funds and closed-end funds will go through different stages. When investing, the legal documents publicly disclosed by the fund shall prevail ~
Investment is a lifetime thing, and a fund with good long-term performance can accompany you for a long time.