1. Switch to other products of the same fund company. Because the liquidation process takes a long time, the money will be locked in the liquidation process. Switching to other products of the same fund company can avoid idle funds, and the same fund company will generally be exempted from subscription fees.
2. Generally, after the liquidation, the fund shares held by investors will be converted into cash according to the net value before liquidation and returned to investors after deducting the liquidation expenses.
At the same time, in the liquidation stage, the fund manager will no longer accept the application for subscription and redemption put forward by investors, stop collecting fund management fees, fund custody fees, fund sales service fees and investors' funds, and enjoy current interest, but will deduct certain liquidation expenses. When the income generated during the liquidation period is greater than the liquidation expenses, the investor's income will be reduced, otherwise, when the income generated during the liquidation period is less than the liquidation expenses, its income will be increased.
3. Before the fund is liquidated, the fund company will issue a liquidation announcement in advance. During this period, investors can redeem funds or conduct fund conversion operations to avoid losses caused by liquidation.
The reasons for fund liquidation may be as follows:
1, closed-end funds expire. Closed-end funds generally have a duration. If the duration is not extended after expiration, they will be liquidated.
2. The fund share holders' meeting voluntarily decides to terminate the fund contract and enter liquidation.
3. The open-end fund meets the liquidation conditions: first, the net value of the fund is less than 50 million for 20 consecutive working days, and second, the number of fund holders is less than 200 for 20 consecutive working days.
4. The scale of new fund raising is not up to standard, and there is a minimum scale at the time of initial public offering, generally 50 million. If it fails to reach the scale, it means that the fund issuance fails and needs liquidation.
5. The fund company did not meet the regulatory requirements and was forced to liquidate.
When buying funds, investors should try to buy funds with good historical performance from fund managers and well-known fund companies, which can reduce the probability of investors buying liquidation funds to some extent.