Fund Redemption: Which day's net value shall prevail?
Fund redemption refers to the operation that investors redeem their fund shares to get cash. Many small partners will have doubts about the calculation of the net value of fund redemption. Which day is the net value? Let's make a detailed analysis.
1. What is the net value of the fund on the redemption date?
When the fund is redeemed, the redemption price announced by the fund company shall prevail, and the redemption price shall be the net value of the fund on that day. Specifically, the net value of the day officially announced by the fund company shall prevail. After the close of each trading day, the fund company will announce the net value of the fund on that trading day. The net value of fund redemption is subject to the net value of the day.
Second, the time point of fund redemption
Fund redemption generally has two time points, that is, before the opening and after the closing of each trading day. Specifically, investors can apply for redemption before the opening of the trading day, but the redemption price at this time is the net value of the previous trading day. After the closing of the trading day, the fund company calculates and announces the redemption price according to the net value of the day, and investors can redeem it after the closing.
Three. Factors affecting the change of fund net value
The calculation of the fund's net value is based on the market value of assets held by the fund, such as stocks, bonds and money market instruments. The change of fund net value depends on the fluctuation of asset market. When the asset market price rises, the net value of the fund will also rise; or vice versa, Dallas to the auditorium
Fourth, the risk of fund redemption
The risks of fund redemption mainly include market fluctuation risk and liquidity risk. Market fluctuation risk refers to the price fluctuation of assets such as stocks, bonds and money market instruments invested by the fund, which may lead to the decline of the fund's net value. Liquidity risk refers to the fact that the redemption amount of the fund exceeds the cash reserve of the fund company, which makes the fund company unable to pay the redemption request of investors in time.
Fund redemption is based on the net value of the day. Investors should pay attention to market fluctuation and liquidity risk when redeeming, and choose the appropriate redemption opportunity. I hope the analysis of this article can help you better understand the relevant knowledge of fund redemption.