1 minute to read: after the fund is liquidated, where will the money go?

◎Zhiyou College (ID: zhiyoucf88)

◎ Author | Zhiyou Xuejie

Hello everyone, let's talk today, after the fund is liquidated, where will the money go?

There's a scary-sounding word in fund investing: fund liquidation.

The word liquidation can be understood literally, that is, it is emptied, there is none.

So when the fund is liquidated, will we not get our money back at all?

The answer is no.

General funds will only be liquidated after certain conditions are met, and the approval of the regulatory authorities must be obtained before liquidation, and it is not the fund company itself that wants to liquidate.

Even if it is liquidated, the fund company will set aside time to issue an announcement, and then after the fund is liquidated, the money will be returned to the basic people, and it will not become zero.

For the loss of the base people, it is to buy a fund that was intended to be held for a long time, but the fund liquidation finally returned all your shares.

So don't be afraid when you encounter a fund liquidation, the situation is not as bad as you think.

So under what circumstances could the fund be liquidated? The CSRC stipulates that when the size of a fund (the combined size of each category) is less than 50 million, and the various management fees and fee income of the fund cannot support the normal operation of the fund, the fund may be liquidated.

After all, the fund company also has to pay the sales fee of the sales channel, the custody fee of the bank, and the salary of the fund manager, researcher and other related operating personnel of the fund, and if the long-term scale is too small to make ends meet, it will be liquidated.

Therefore, when you buy a fund, you must pay attention to the size of the fund, such as only one or two million, try to avoid, the size of the fund is more than 200 million is relatively safe, more than 500 million is better.

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