Why should the new fund be closed for three months?
Generally speaking, the establishment of a new fund goes through three stages: raising period, closing period and opening period. In other words, a fund will not go public immediately after the fundraising is completed, and it will also go through a closed period.
The main function of the closed period is to buy fund managers for buy buy, so the closed period and the open period often overlap. According to the regulations, the maximum closing period of open-end funds is 3 months, but in fact most funds are settled in 1-2 months.
The reason for this is the following：
First, avoid high risks.
If the fund is issued when the stock market rises sharply, it is easy to stand guard immediately, so in order to reduce the risk as much as possible, a three-month closure period is given.
Second, reduce the impact cost.
Some large-scale funds raise billions or even billions at once, which is higher than the market value of many listed companies. If the fund concentrates on buying a large number of shares of a company in a short period of time, it will not only lead to abnormal fluctuations in the stock price, but also easily force its own buying cost to increase. Therefore, in order to reduce the impact cost, fund managers need time to complete the opening step by step.
Fund investment is a long-term sport, and a complete investment cycle may take 2-3 years or even longer, so we don't need to care about short-term fluctuations, and companionship is the longest confession.