Closed-end fund refers to an asset management company that cannot open or redeem its share to the public after the investor sets a deadline, that is, the investor cannot transfer his investment to others before the deadline ends. The income of closed-end funds is influenced by many factors. The following analyzes the profit model of closed-end funds from multiple angles:

I. Investment strategy

Closed-end funds have a clear strategic positioning, such as focusing on a single industry and region. So they invest accurately. At the same time, closed-end funds can get more stable and considerable returns in their market cycle because the investment period hedges the market risk.

Second, release the intrinsic value of the enterprise.

The money invested in closed-end funds is not only an investment in the stocks of enterprises, but also an investment in the future earnings of enterprises. For example, when a closed-end fund invests in the stock of an enterprise, the value of the investment will be released when the enterprise goes public, and accordingly, the net value of the closed-end fund will also rise. Similarly, if the actual controller of the enterprise wants to buy back the shares invested by the closed-end fund, the closed-end fund can benefit from it, then the release of the intrinsic value of the enterprise is also a way for the closed-end fund to profit.

Third, the fund's net value growth.

Closed-end funds have a certain term, after which the principal and income will be returned according to the provisions of the fund terms, and the investment interest tax of the fund is also low. According to the leveraged investment strategy, closed-end funds do not need to consider the change of fund scale, with stable investment scale, high dividends and stable income. When the fund expires, the increase in net value will generate net income, further increasing the income.

Fourthly, passive tracking strategy.

Compared with Public Offering of Fund, closed-end funds have the advantage of passive tracking, and can make different investment strategies according to different market characteristics to seize market opportunities.

On the whole, there are many ways for closed-end funds to make profits, including investment strategy, the release of enterprise intrinsic value, the growth of fund net value, and the strategy of passive tracking. Wise investors must analyze multiple factors when investing in order to improve the return on investment.