Under what circumstances does the foundation withdraw from the market?
When the fund has the following circumstances, the fund will face the risk of delisting:
1 Closed-end funds will be delisted if their duration is not extended after their expiration. Closed-end funds generally have a duration.
2. The net value of open-end funds is less than 50 million for 20 consecutive working days, or the number of fund holders is less than 200 for 20 consecutive working days.
In the initial public offering of fund funds, if the fund scale is less than 50 million yuan, it means that the fund raising fails and the new fund will be delisted.
When the net value of the fund falls to 0.3 yuan, the fund may face the risk of delisting.
The assets will be liquidated before the fund is delisted, and after the liquidation, the funds will be distributed to investors according to the fund share of the fund holders. Before the fund is closed, the net value of the fund is lower than the investor's position cost, indicating that the investor has lost money; When the net value of the fund after liquidation is higher than the investor's position cost, it means that the investor is profitable.
Generally speaking, it is impossible for a fund to lose a penny of its principal, because the liquidation mechanism will be triggered when the fund falls to a certain amount. After the liquidation of the fund, assets will generally be paid to investors, but most investors will basically suffer serious losses after the liquidation of the fund.