When buying funds, some investors turn a blind eye to the relevant terms and announcements. When looking at the expected annualized expected return of the fund, they will find that the fund has suspended trading. I don't know what this means.

What's the difference between on-site funds and stocks? What are the on-site open-end funds?

What do you mean the fund stops trading?

When you say that the fund stops trading, you mean that the fund company suspends the fund subscription, redemption or conversion business, and the fund company will issue relevant announcements.

The reasons for the suspension of subscription of the Fund are as follows:

1. Control the scale and limit the excessive growth of the scale.

Although there are many stocks in the market, there are limited stocks that meet the investment objectives of the fund or meet the investment expectations of fund managers. When the fund scale grows too fast, the fund manager can't put the extra money into excellent stocks, which will lead to idle funds. Therefore, when a large amount of funds are expected to flood in, in order to keep ahead of the performance, fund managers usually take the way of suspending subscription to control the scale.

2. There are stocks in the fund positions that are expected to undergo major asset restructuring or have been suspended.

When a stock is expected to have a major asset restructuring or be suspended, there will be several consecutive daily limit after the resumption of trading. In this case, it is difficult for investors to buy the corresponding stocks in the stock market, and smart investors will look for funds that hold such stocks. In order to avoid a large influx of funds to dilute the interests of the original holders, the fund company will suspend its subscription.

3. Generally, the subscription of new funds will be suspended.

Since all newly listed or about to be listed stocks are held by new funds, there is huge room for future stock price increase. Therefore, in order to ensure the smooth operation of funds, fund companies will suspend subscription or suspend large-scale subscription.

4. When the fund shares are split, folded up or folded down, the subscription will also be suspended.

This situation generally appears in graded funds. Due to special design principles, the grading foundation makes regular and irregular conversions. During the conversion period, the parent fund and Grade A (for some unlisted A shares) need to be split, so the subscription will be suspended, but the suspension time is very short, usually 2-3 days.

5. Monetary Fund will suspend subscription on holidays.

This situation is more common. Before the long holiday, many idle funds will concentrate on buying monetary funds to pursue the short-term expected annualized expected return during the holiday, resulting in the phenomenon that the newly purchased funds dilute the expected annualized expected return of the original holders.