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Will the money be deducted after the fund I bought loses its principal?

In the fund market, investors buy funds without losing all their capital. In the worst case scenario, funds purchased by investors will be liquidated. After the liquidation is completed, it will be calculated according to the net value of the fund before the liquidation, and returned to the investor after deducting the liquidation fee.

therefore. In the following three cases, the purchased fund will not lose the full principal and deducted, and the fund will enter a state of liquidation:

  1. The closed-end fund expires. Closed-end funds usually have a duration. If the period expires and is not extended, it will be liquidated
  2. The open-end fund is eligible for liquidation. Open-end funds will be liquidated if they meet the following 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 for 20 consecutive working days is less than 200.
  3. The new fundraising scale does not meet the criteria. In an IPO, there is a minimum size, typically 50 million. If the scale is not reached, it means that the fund issuance has failed and needs to be liquidated.