What does capital settlement mean?

Fund liquidation refers to realizing all fund assets and distributing the proceeds to fund holders.

Fund liquidation is different from stock delisting. As long as the net value of the fund is not zero on the liquidation day, even if the fund is liquidated, all the money in the account can still be recovered after liquidation without loss.

How do investors avoid pits?

1. Avoid small funds with a fund size of less than 200 million yuan.

Investors can choose those funds that have been established for a relatively long time and are larger than 200 million yuan. In order to avoid fund liquidation, prudent investors will choose funds with a scale of over 654.38 billion.

More radical investors will choose at least 200-300 million funds. In addition, small-scale funds are not as risk-resistant as large funds except that they are easy to trigger liquidation conditions;

2. Look at the composition of fund holders.

See if the fund holders are more retail investors or institutions. Funds with a high proportion of institutional funds are common, but if the institutions redeem them, the scale of the funds will also drop precipitously. Therefore, if a fund institution's capital accounts for more than 90%, investors should be vigilant. Under normal circumstances, investors will be reminded in the form of announcement or short message before fund liquidation. Redeem as soon as possible when you receive the liquidation prompt from the fund company.