Many investors will have the question that if the fund company goes bankrupt, will investors lose their money? I would like to give you a brief explanation of this problem, hoping to dispel your doubts.
If the fund company goes bankrupt, what about our money? Will it be affected?
The fund company is also a company. As long as it is a company, it has the possibility of bankruptcy. However, before the fund company goes bankrupt, our fund will be liquidated.
So what is liquidation? Fund liquidation is to forcibly redeem the fund according to the net value of the fund on a certain day. We redeem the fund, get back the funds, and continue to invest in another fund. Therefore, it is not terrible to liquidate the fund. It will not cost us nothing and have little impact on our investment, but it may delay our investment for a period of time. Our funds are safe. No matter how the fund company operates, we cannot move this part of our investment funds. Because this part of the fund is placed in the bank custody account. The fund company has no right to withdraw these funds to the company's account and can only redeem them back to the investor's account.
Therefore, investors of public funds need not worry about investment safety.
