When investors buy funds, they sometimes refer to them as "wrong" and scold them as "wrong". Closed-end fund as an open-end fund investment is typical. The most fundamental difference between the two funds is that the factors that determine the fund price are different. The price of closed-end funds, like stocks, is determined by the relationship between supply and demand in the market. When liquidity is poor, there may be a discount phenomenon in which the face value is much lower than the net value. The unit price of an open-end fund is its net value, so there will be no discount. Therefore, buying open-end funds is the management ability of fund managers, while buying closed-end funds depends on the discount rate of such funds, which is a relatively more important factor.

In addition, unlike open-end funds, the size of closed-end funds is constant. The way to buy and sell is through the stock exchange, just like stocks. The transaction object is other investors, not through banks and other consignment agencies, nor is the transaction object the fund company itself. The transaction cost of closed-end funds is lower than that of open-end funds and stocks.