Things about fund liquidation!

Things about fund liquidation! Things about fund liquidation! Data display，2025years since，More than 100 fund products in the public offering industry have entered liquidation procedures(A/B/C shares are calculated separately)。And in 2025，The number of liquidation funds has reached an astonishing 400。Many friends may be confused：What circumstances would trigger liquidation? Looking at A-shares that will be pretty good in 2025，Why are fund liquidations suddenly increasing?

Suppose the investment fund is liquidated，what do I do? Let’s talk about this topic today。What is fund liquidation? Fund liquidation refers to the realization of all fund assets，Distribute the proceeds to holders，That is, you who buy the fund。So，What conditions will trigger fund liquidation?

General situation，The net asset value of the fund is less than 50 million yuan for 60 consecutive days，Or the number of fund share holders does not reach 200 for 60 consecutive days，will trigger the conditions for fund liquidation。Why liquidation? recent years，Structural reform of public funds is advancing at full speed，in mode single、Serious homogeneity、Outsourcing supervision becomes more stringent、Poor performance and other factors intertwined，The phenomenon of liquidation of public funds is becoming more and more common。

If we want to delve deeper into the reasons for the acceleration of fund liquidation，The main reason comes from policy promotion。

One is，under new regulations

Require

Down，Too many mini-funds directly affect the approval speed of new funds by fund companies.；The second is，Strengthened supervision of outsourced business leads to redemption of outsourced funds，This directly led to a significant reduction in the scale of these institutional customized funds.，To avoid wasting manpower and material resources，Had no choice but to liquidate，Under the new asset management regulations，capital guaranteed fund、Products such as graded funds are subject to various policy constraints，This makes it more difficult for these funds to operate in the later stages.，Directly affects the "life span" of these funds。

In addition to policy changes，Factors affecting fund liquidation also include market environment and fund performance。For example, 2025，Macroeconomic downturn combined with sharp decline in A shares，Drag down the net performance of the fund，Some funds with unsatisfactory long-term performance are the main targets for redemption by investors.。3 situations of fund liquidation 1、Closed-end funds mature。Closed-end funds generally have a duration，If the duration is not extended after expiration，will be liquidated。

But the liquidation at this time，It does not mean that the fund will suffer investment losses，On the contrary, it is possible that he made money。When a closed-end fund needs to be liquidated due to maturity，Principal and investment income will be returned to investors，So as long as the fund does not suffer investment losses，Liquidation will not cause losses to investors。but，There are not many closed-end funds left in existence.，Approximately 12% of all public funds，So this type of fund liquidation is not common。

1. Open-end funds meet liquidation conditions。Open-end funds have no fixed term，Therefore, there is no such thing as liquidation at maturity。But open-end funds also have two liquidation conditions:，One is that the fund’s net value is less than 50 million for 20 consecutive working days，One is that the number of people holding the fund for 20 consecutive working days is less than 200。

first，For the net value of the fund below 50 million,，It may be caused by two reasons，One is experiencing massive redemptions from fund holders，The second is investment losses。The second reason is probably more of the two reasons，Because if a fund can continue to make money for investors，I believe there won’t be a lot of redemptions，Unless you have been losing money。If the liquidation is caused by investment losses，There will definitely be considerable losses for investors。

But it’s not like you can’t get back all the money you invested.，Unless the fund loses not a penny left，As long as the net value of the fund is not zero，I can still get it back more or less.。Secondly，Insufficient number of shareholder accounts，In fact, it’s almost the same as having a net worth of less than 50 million.，Because under normal circumstances a fund that makes money，It’s not like we can’t even attract 200 investors.，Only funds that have been losing money will be completely abandoned by investors。3、The scale of new fund raising is not up to standard。

Whether it is a closed-end fund or an open-end fund，There is a minimum size for an initial public offering，Generally 50 million。If it does not reach the scale，It means that the fund issuance failed，Need to be liquidated。but，Liquidation in this case，Fund company as fund sponsor，Not only does it need to return all investors’ principal,，And you also need to pay interest on the funds during the fundraising period。Therefore, liquidation will not cause any loss to investors.。

Overall，Can cause investors to suffer large losses，Mainly due to investment losses, the fund was liquidated with a net worth of less than 50 million.。If investors want to avoid the risk of fund liquidation，Just don’t buy funds with lower net worth or fewer holders.。

About Hong Kong Xintong

Hong Kong Xintong focuses onGuangdong and Hong Kong license plates、Shenzhen Hazardous Chemicals Business License、Shenzhen labor dispatch licenseandShenzhen Charity Foundationapplication services，Assist customers to applyShenzhen travel agency business license、Shenzhen pawn shop business license、Shenzhen auction house license and other mainstream domestic financial licenses，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableODI overseas investment registration、International travel agency registration and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。