If the fund continues to decline but is not sold, the final result is fund liquidation, that is, entering liquidation procedures and distributing the remaining assets to fund holders in proportion. During the duration after the entry into force of the open-end fund agreement, if the profit of fund assets is less than 50 million for two consecutive months, or the total number of fund share holders is less than 200 for two consecutive months, the fund manager has the right to announce the termination of the fund after the approval of the China Securities Regulatory Commission. Due to the relatively small scale of fund assets, it is easier to meet the liquidation conditions in the event of financial crisis, so liquidation occurs frequently. The above is what will happen if the fund keeps falling and not selling.

What do you mean by clearing funds?

Fund clearance refers to the individual selling all the fund shares he already owns. If you don't sell if you fall, the share of individual funds will continue to decrease, that is, you will continue to lose money. Clearance of funds is very common in the financial services platform. In the fund circle, there are a series of viewpoints such as clearing positions, forcibly closing positions and buying. If there is a loss in fund investment, most people will choose to stop loss in time, otherwise they will always lose money, which will lead to tight funds. This article mainly writes about how the fund will always fall and not sell, and the content is for reference only.