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What does it mean that private equity funds are open every month and can be redeemed every month?
Funds that are open every month can be purchased and redeemed every month, and it is necessary to inform the outsourcer of the open day 2 working days in advance. Private equity funds can be redeemed during the opening period. Generally speaking, private equity funds will be closed for one year after opening positions, and then the fund manager will announce the fund opening period according to the fund contract and other time, during which the fund shares can be redeemed at any time.

The fund redemption open day refers to the date when the fund can be redeemed. Investors can purchase and redeem the fund at will. After the opening day, the fund will enter a closed period, during which no transactions can be made.

Funds with regular open days are generally closed-end funds. The total size of closed-end funds is fixed and cannot be redeemed in advance before maturity. Closed-end funds are closed after their establishment, and no operation can be done during the closed period. If you want to purchase and redeem, you need to wait until the fund is listed and traded or regularly open.

According to the Interim Measures for the Business Management of Private Equity Funds, after the closure period of private equity funds ends, customers should fill in the redemption application and send it to the corresponding trust company 5- 10 working days before the opening date of each month. The net value of the open day will be the net value of your redemption of the private placement, and usually the funds will be remitted to your bank account within 3-7 working days after the open day. The specific circumstances shall be implemented in accordance with the provisions of the private placement trust contract.

What is a private equity fund?

Private equity funds are funds raised by private individuals or directly from specific groups. The corresponding Public Offering of Fund is Public Offering of Fund. People usually say that funds are mainly mutual funds, that is, securities investment funds.

Private equity funds in a broad sense include private equity funds in addition to securities investment funds. In China's financial market, "private fund" or "underground fund" is usually a collective investment that is privately raised by specific investors, as opposed to the securities investment fund that is supervised by the competent department of China government and publicly issues beneficiary certificates to unspecified investors.