Fund raising period The fund raising period is the fund share raising period stipulated in the fund contract, which can also be called the fund issuance period. Generally, the longest period is not more than three months. During the fund raising period, the fund company sells the fund through the agency or direct sales channel.
The fund's fundraising period has its predetermined fundraising target, and the subscription that exceeds the target share cannot be confirmed, and the fund that fails to complete the predetermined target at the expiration of the fundraising period cannot be established. Therefore, the fund in the raising period cannot open positions, and there will be no investment losses and profits.
The closed period of the fund refers to the period set when the fund was first issued, in order to avoid the liquidity problem caused by investors' daily trading when the fund was first opened and ensure the stable operation of the fund. The closure period is generally three months. During this period, the fund manager will gradually open positions according to market conditions and personal style, and the net value of the fund will change with the price fluctuation of the securities held, which will also generate certain profits or losses.
Therefore, the closed period of the fund is an opportunity for fund investors to purchase and redeem, rather than an opportunity for fund managers to invest in the closed period. The closed period of funds is usually the best time for fund managers to allocate funds. During this period, the efficiency and stability of the use of funds are the best. If the fund can be successfully allocated at a low valuation price during the closed period of the fund, the trend of the follow-up fund will have a foundation.
It is impossible for a fund manager not to waste a good opportunity in the closed period. Once the closed period is over, investors can redeem the fund shares, and fund managers should pay more attention to controlling the liquidity of fund products. At this time, the risks and costs are even higher.
As mentioned above, because the fund manager will invest during the closed period, the investment will definitely generate profits or losses. It is not like some investors think that "because it can neither be purchased nor redeemed during the closed period, the net value of the fund remains unchanged during the closed period." On the contrary, the net value of closed-end funds will change, and because investment managers prefer to open positions at relatively low prices, they may choose to gradually open positions when stocks are in a downward trend. It is normal for closed-end funds to have a decline in net value at this time.
To sum up, the raising period and closing period of funds are two different concepts. Funds in the raising period cannot open positions and will not generate profits and losses. However, closed-end funds are a good opportunity for fund managers to open positions, and once they open positions, losses may occur. The closed-end period is set to facilitate fund managers to open positions, not to prevent fund managers from investing, so it is wrong to think that closed-end funds will not lose money.