Author Topic: How low is consider low?  (Read 1383 times)

Offline Jani

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How low is consider low?
« on: December 04, 2006, 08:45:22 AM »
I've a question about the funds performance in unit trust.  Normally how do fund managers decide on giving up the fund (close it) when the fund performance is really bad?  For eg: let say a fund started with 500m of fund size and it's fully subscribed.  But then after sometimes, some bad things occured and everybody repurchase their unit and eventually the fund size only left 1m.  Obviously the fund manager will not be able to do anything with 1m, then they might decide to close down the fund and force the remaining unit holders to repurchase right?  So, my question is, as a unit holder, how do I know whether the fund is to be closed soon?  I don't what to be the last few stupid investors whom still remain in the fund while everybody already left.  Do they have any margin standard to refer as? For eg: when the NAV has dropped for more than 80% or something like that?