Can funds be traded during the closed period?
The fund cannot be purchased and redeemed during the closed period. Investors can only purchase and redeem the fund after the fund is closed, that is, when the fund officially begins to operate.
However, under certain conditions, funds can be traded as securities in the market. Although it is stipulated that closed-end funds cannot be purchased and redeemed, it has nothing to do with the trading of fund bonds on the exchange. Generally speaking, closed-end funds will be closed for a long time. If an investor subscribes for a closed-end fund in advance, but needs to sell it within the closed-end period for some reason, as long as the fund belongs to the on-site fund, then the investor can sell it in the market in a way similar to buying and selling stocks by transferring the fund to custody, and the transaction is conducted at the market price.
How long is the closure period?
Funds are divided into open and closed types. Under normal circumstances, the closed period of open-end funds will not exceed three months, and closed-end funds will not exceed five years. In addition, the specific duration of the fund closure period depends on the speed of opening positions and is also affected by the size of the fund. The larger the scale of the fund, it may slow down the speed of opening positions and increase the closed period of the fund; It may also be because the amount of funds is large and the opening efficiency is higher, which reduces the closed period of the fund.
The main purpose of setting up a fund closure period is for the orderly operation of the fund. Assuming that investors can move funds at will during the period of opening positions, fund managers will certainly be affected when formulating corresponding investment strategies, resulting in the inability to open positions.