Can closed-end funds be redeemed?
Closed-end funds are generally not redeemable, but can be transferred. Closed-end funds refer to investment funds with fixed fund scale, so closed-end funds cannot be redeemed when they are listed or for a long time. Closed-end funds have a clear duration (not less than 5 years in China), and the issued fund shares cannot be redeemed during this period.
Because closed-end funds cannot be redeemed, the transaction price and investment strategy of closed-end funds are different from those of open-end funds. The transaction price of closed-end funds is generally determined by the relationship between supply and demand, while the transaction price of open-end funds is the net value of funds. In terms of investment strategy, because closed-end funds don't have to worry about redemption, fund management companies can formulate long-term investment strategies and achieve long-term operating results.