What do you mean by 10% of the huge redemption

2022-05-31 0 By

Huge redemption proportion of 10% refers to the fund that day redemption shares accounted for 10% of the total fund share and above is a huge redemption, encounter a huge redemption, investors want to redeem the fund on the choice of delay, investors want to continue to invest on the choice of cancellation.First look at the huge redemption: huge redemption refers to the day when the open-end fund net redemptions (redemption requests the total balance after the deduction of the total purchase application) by more than 10% of the fund size, fund managers can accept redemption ratio is not less than 10% of the total fund size case, apply to the rest of the redemption for extension.Then take a look at the treatment of large redemptions: when there is a large redemption, fund managers generally have two treatment methods: full redemption and partial deferred redemption.Among them, when the fund management company believes that it has the ability to redeem all the investors’ redemption applications, it will follow the normal redemption procedures and have no impact on the interests of the investors.Finally understand the redemption: redemption also known as buy back, it is for the open-ended fund, investors in their own name directly or through the agency to the fund management company to withdraw part or all of the fund investment, and will buy money to the investor’s account.The fund that people says normally basically is to point to negotiable securities investment fund.Fund, in a broad sense, refers to a certain amount of funds set up for a certain purpose.Mainly include trust investment fund, provident fund, insurance fund, retirement fund, the fund of all kinds of foundation.Dialysis from the accounting point of view, fund is a narrow concept, meaning that has a specific purpose and use of funds.The fund that we mention basically is to point to securities investment fund.