Holding period funds are the main force in liquidation, liquidity risks must not be ignored.

Since the beginning of this year, the number of public fund products being liquidated has reached nearly 200. It is worth noting that regular open-end and holding period funds have become the main force in liquidation, accounting for more than 40% of the total number of liquidated funds, involving various types such as FOF, "fixed income+", pure bond funds, and active equity funds. Furthermore, there are signs of a decrease in the total number of holding period fund shares in the third quarter, with a more significant decrease in active equity and pure bond holding period fund shares. The original intention of holding period funds design was mainly to reduce the friction costs caused by investors chasing after trends by limiting redemptions. Industry institutions believe that as the majority of equity-type holding period funds on the market were issued during the relatively high point of the market, investors in holding period funds not only sacrificed liquidity but also did not receive "relatively good" returns, and their investment experience is unlikely to be satisfactory. Therefore, investing in holding period funds not only requires a clear understanding of liquidity risks but also a comprehensive evaluation of factors such as fund manager capabilities and market conditions.