Step 1: Understand the process of fund redemption.
First of all, for a fund investor who needs to redeem the position share less than the principal, it is necessary to know that this process usually needs to be carried out between the fund company and the bank. This process includes submission of redemption application, extra handling fee and arrival time.
Then, investors need to know the time policy of fund redemption, because different fund companies have different regulations in this regard. Generally speaking, fund companies and banks will generally complete the redemption procedures within T+ 1 to T+7 working days, subject to the announcement of each fund company.
Step 2: Consider the cost of redemption.
In addition to the process of fund redemption, investors need to pay attention to the cost of redemption. Generally speaking, the fund redemption fee usually includes fund sales service fee, redemption fee and custody fee. In addition, some fund companies may also multiply the holding time by a certain percentage of redemption fees.
In order to avoid further reduction of the principal due to the high redemption fee, investors can pay attention to the promotion activities launched by fund companies and reduce the redemption fee within a certain period of time. In addition, investors can also choose long-term investment methods such as fixed investment to avoid redemption.
Step 3: Consider the market environment.
Finally, although redemption is a way to keep the principal stable, it must be noted that the fluctuation of the fund market is often unpredictable. Therefore, when redeeming funds, we must fully consider the influence of the market environment and avoid making wrong decisions blindly following the changes in market prices. If investors can grasp the fluctuation of the market, even if it is a small share, they can get future income through fund investment.