In the fund market, investors buy funds that do not lose all their capital. The worst outcome would be that the funds investors bought would be liquidated. Upon completion of liquidation, it shall be returned to investors after deducting liquidation fees, calculated according to the net value of the fund before liquidation.
So. Under the following three circumstances, the purchased fund will not lose all principal and be deducted, and the Fund will enter liquidation:
1.Closed-end fund maturity. Closed-end funds usually have a duration. If the term is not extended after expiration, it will be liquidated
2.Open-end funds are eligible for liquidation. Open-end funds that meet the following conditions will be liquidated: first, the net value of the fund is less than 50 million for 20 consecutive working days; second, the number of fund holders is less than 200 for 20 consecutive working days.
3.The new funding scale is not up to standard. In an INITIAL public offering, there is a minimum size, usually 50 million. If not up to scale, means that the fund issued failure, need to liquidate.