: protect the rights and interests of investors
With the development of capital market, funds have become one of the important choices for investors. There are risks in the fund market. Some funds may face the risk of liquidation in the event of losses or other circumstances. Fund liquidation refers to the fund manager or fund custodian's liquidation and sale of funds in accordance with the provisions of the Fund Contract and relevant laws and regulations, in accordance with the provisions of the Fund Contract and the decision of the fund share holders' meeting or the fund manager, so as to realize the rights and interests of fund share holders. When will the fund be liquidated?
One: the fund size is too small.
The scale of the fund is one of the important indicators of the fund. Generally speaking, the larger the scale, the stronger the investment ability and risk control ability of the fund. If the scale of the fund is too small to achieve a certain scale benefit, it may face the risk of liquidation. Specifically, according to the Fund Law, if the number of fund share holders agreed in the fund contract is less than 50 or the total fund share agreed in the fund contract is less than 6,543,800,000 yuan, the fund manager shall promptly apply to the China Securities Regulatory Commission for liquidation of the fund.
Two: the fund manager leaves.
Fund manager is the core figure of fund investment, and his resignation will have an important impact on fund investment and management. If the fund manager can't find a suitable successor in time after leaving his post, or the investment style of the new fund manager is quite different from that of the original fund manager, it may lead to unstable fund performance and liquidation. When investors choose funds, they need to pay attention to the situation of fund managers and understand their experience and investment style.
Third, the fund suffered serious losses.
The loss of funds is one of the important reasons for capital settlement. If the fund continues to lose money, resulting in the net asset value of the fund being lower than the liquidation line stipulated by laws and regulations or fund contracts, the fund manager shall promptly announce the fund share holders and report to the China Securities Regulatory Commission for the record, and liquidate the fund according to the relevant provisions of the Fund Law and the provisions of the Fund Contract. When buying a fund, investors need to carefully understand the investment strategy and risk control measures of the fund to reduce the risk of fund losses.
Fund liquidation is an important measure to protect the rights and interests of investors and one of the important guarantees for the healthy development of the fund market. When choosing a fund, investors need to pay attention to the fund size, fund manager and fund performance to reduce the risk of fund liquidation. At the same time, investors also need to pay attention to whether the liquidation procedures of fund managers are standardized to ensure that their rights and interests are fully protected.