How to quickly credit fund redemption

During the recent sharp adjustment in the stock market, most open-end funds outperformed the market, showing the style of "expert financial management" again. For small and medium investors, open-end funds have the dual advantages of profitability and liquidity, and fund companies take care of their assets, saving worry and effort. However, many fund investors have encountered such a problem. The subscription and subscription of the fund are very convenient, but the redemption does not seem to be so "refreshing".

"To redeem a fund, it takes T+7 working days, plus two weekends, and it takes almost nine days for the funds to be available. Why is the fund redemption so slow?" "The same fund is redeemed at Bank A, The account can be credited in two days, why can it be T+3 or T+4 when it is changed to Bank B?"

Faced with these questions from investors, the reporter interviewed relevant people from banks and fund companies . They told reporters that it seems that fund redemption is just the reverse process of subscription, but it is actually not as simple as imagined.

For example, after an investor issues a redemption order, the order will reach the fund company's database. They summarize the fund redemptions of the day every day, and set aside the corresponding cash for the redemption payment of investors. For different fund types, the processing time of redemption settlement by fund companies is not consistent. For example, currency funds and short-term debt funds, the interval between the trading day and the settlement day is small, generally the day after the trading day; if it is a stock type fund Funds, generally the next third or fifth day of the trading day. After the settlement, the money is received by the bank, and the bank also has to go through 1-2 days of settlement, and finally the redemption amount can be credited to the investor's account. It can be seen that the redemption speed of a fund is inseparable from the settlement speed of fund companies and agency sales channels. Therefore, even for the same fund, the redemption time will be different in different distribution channels.

Choose the fastest agency sales bank

So, in the current major banks that sell funds, what is the difference in the time of redemption of various funds? The reporter compiled a fund redemption Going back to the account schedule, we can provide some reference for the reader.

From the above table, we can see that there is still a big difference in the time of redemption of funds sold by different banks. For example, money market funds and short-term debt funds, the shortest T+1 It can be credited within working days, and the longest may take T+3 or T+4 working days to credit. According to the reporter's understanding, the fastest one is the China Merchants Cash Appreciation Fund sold by China Merchants Bank. The redemption of this fund can reach the account before 9:30 on T+1 working day. The design of the account arrival time will undoubtedly bring a lot of convenience to those stock market investors: when the stock market is not good, invest funds in money market funds to obtain higher returns than current savings; when the market rebounds , the redemption order is issued during working hours one day in advance, and before the stock market starts trading the next day, the redemption funds can be in place, and the stock investment can be done with ease.

For fund products other than money market funds and short-term debt funds, the redemption time set by the bank is generally T+5 or T+7 working days. The fastest redemption speed is the funds sold by Shanghai Bank. According to the staff of Shanghai Bank's Interbank Finance Department, the funds sold by them can be credited within T+4 working days. Except for a small number of funds, non-monetary and short-term debt funds sold by China Merchants Bank can also be credited within T+4 working days.

However, it is worth noting that the T here refers to the redemption application submitted before 3:00 pm on the current working day. Some investors use online banking or telephone banking to redeem funds. If it exceeds 3:00 pm, it will be treated as the second working day. Accordingly, the time when the funds arrive in the account will be moved back by one job. day. In addition, the time for redemption to the account is calculated according to the working day. If it encounters non-working days such as Saturday and Sunday, the arrival time will also be delayed.

Therefore, when investors choose to buy funds, they should also compare the redemption and credit rates of different agencies in order to improve the utilization rate of funds.

"Yinjitong" and direct sales are faster

Different from bank agency sales channels, funds purchased through "Yinjitong" or the fund company's electronic direct sales channel can still be redeemed at the time of redemption. to "one step faster".

Take the "Silver Foundation" business launched by Huaan Fund, Minsheng, Industrial and Shanghai Pudong Development Bank as an example, to purchase several funds of Huaan through other agency outlets, generally speaking, money market funds need T+2 working days to arrive in the account , other funds need T+5 to T+7 working days to reach the account. However, if you take the "Silver-Based Connect" channel, investors can use their own accounts at noon on the second working day after redemption for money market funds and noon on the third working day after redemption for non-money market funds. This greatly improves the efficiency of investors in the use of funds.

Now more and more investors prefer the electronic direct sales channels of fund companies when investing in funds. The reason is not only that the rate of electronic direct sales has a relatively large discount, but also the speed of fund redemption is faster, which is more conducive to ensuring the liquidity of funds.

For example, GF Money Market Fund, generally speaking, through the bank's agency sales channel, the fund is redeemed at T+2, but if you use GF Card or Industrial Card to redeem through GF Fund online transactions, you can generally Do T+1 to the account. The same is true for Great Wall Monetary Fund. The Great Wall Monetary Fund purchased through the Great Wall Fund Direct Sales Center can be redeemed on the same day, and the redemption money will be credited to the account on the second working day (ie T+1); while other sales institutions outside Hua Xia Bank are basically It will take until the next business day for the account to arrive. If the investor redeems the money market fund through the direct sales channel of Industrial Fund, after the redemption application on T day is successful, the redemption money can be credited to the account on T+1 day as soon as possible.

Smart use of fund conversion to accelerate the arrival of funds

Sometimes, the smart use of fund conversion business can also speed up the time of fund arrival. In Table 1, we can also see that different open-end funds have great differences in the time of redemption - money market funds are generally T+2, other funds such as stock or allocation funds, The time is as long as T+5, or even T+7.

Therefore, if investors want to redeem those funds that have a long time to arrive, such as stock funds, it is faster to use the method of fund switching and redemption than the method of direct redemption. For example, on Monday, you are going to redeem one of your own stock funds. According to the bank's regulations, the redemption funds will not reach your account until T+5 working days.

And if on Monday, you issue an instruction to switch funds to another money market fund under the same company, the fund company will confirm with you whether the fund is switched on the day of T+1, which is Tuesday. If it is successful, you can redeem the converted money market fund on the day of T+2 (Wednesday), and you can get the redemption money in advance on Friday according to the speed of T+2. Not only that, because the rate of fund switching will be lower than the redemption rate of stock funds, sometimes fund companies will also launch preferential activities for fund switching fees, and the redemption of money market funds is free, you may also Save a small redemption fee. Save time and money, why not do it?

However, I want to remind you that fund switching is only applicable to the products of the same fund company sold by the same agency, so for those investors who purchase funds through the agency, to meet these two conditions at the same time, it is possible There will be some difficulty. However, if you purchase the fund through the direct sales channel of the fund company, there should be no problem in using the "accelerated" channel of conversion and redemption during redemption.