The so-called closed financial management means that this financial management product has a fixed redemption date announced in the product manual. If the product reaches the specified expiration date, this financial management product will not be redeemable in advance. .

Our most common closed-end financial products include closed-end bank financial products, which means that products for subscription and redemption can only be developed in a fixed period.

Supplementary information:

1. Closed-end financial products have relatively high returns and poor liquidity. They cannot be redeemed in advance or have relevant restrictions on early redemption.

2. Open-ended financial products refer to financial products that can be redeemed at any time and have good liquidity. Differences from closed-end financial products:

3. Compared with closed-end financial products, open-end financial products have lower returns, but have better liquidity and can be redeemed in advance. .

4. If the user's funds are to be used frequently, it is recommended to purchase open financial products, because the cycle is short and the money can be redeemed in time when the money is needed.

Extended information:

1. Closed financial products

Refers to financial products that have a fixed redemption date published in the product manual or before the product expiration date. This financial product cannot be redeemed early. Common closed-end financial products include closed-end bank financial products, which are developed for subscription and redemption in fixed cycles. In addition, the more common type of closed-end financial products is closed-end fund products. The definition of such closed-end funds is mainly in comparison with open-end fund products.

2. The difference between closed-end financial products and open-end financial products

1. The income is different.

Generally speaking, closed-end financial products have relatively high returns, and they cannot be subject to early redemption or early redemption restrictions. Open-type financial management fixed investment rules are simple, and the fixed investment amount can be operated if the fixed investment amount meets the integer multiple of the increment. The fixed investment time and frequency are not limited during product working days, but the yield is lower than that of closed financial management products.

2. The liquidity of funds is different.

Compared with closed financial products, open financial products have lower returns, and their biggest advantage is that they have better capital liquidity and can be redeemed in advance, which is more convenient for temporary capital needs. However, for closed financial products, financial funds cannot be used during the product’s duration.

3. The cycles are different.

If the funds are to be used frequently, it is recommended to purchase open-type financial products. Because the cycle is short, you can redeem them in time when you need money. If you do not redeem open-type financial products, they are usually automatically purchased on a recurring basis. of.

If you have a sum of funds that can be invested within a certain period of time, you can purchase fixed-term financial products.