Some fund names contain the words "fixed opening", while others contain the words "holding". What does this mean respectively? What is the difference?
"Holding" and "Regular Opening" in the Fund Name
Fixed-term fund: a fund that is open regularly. Unlike ordinary open-end funds, which can be freely purchased and redeemed on trading days, fixed-term funds can only be traded within a fixed open period. Fixed investment funds are mainly hybrid funds and bond funds, among which there are many hybrid funds. The closed period of funds is generally 6 months to 3 years, and the open period of funds is generally one week to half a month.
Holding fund: a fund that can only be redeemed after it has been held for a period of time. Ordinary open-end funds can be redeemed freely after subscription, while holding funds can only be redeemed after the holding period expires. The holding funds are mainly hybrid funds and equity funds, among which there are many hybrid funds, and the holding period of funds is generally between 3 months and 5 years.
What is the specific difference between fixed-term funds and holding funds?
Redemption restriction
Both fixed-term funds and holding funds have redemption time limits, that is to say, investors must meet certain time limits before they can operate.
For fixed-term funds, they can only be purchased and redeemed during the opening period, and the shares purchased during the opening period can be redeemed during the same opening period without waiting for the next opening period. However, it should be noted that short-term redemption fees may be charged for short-term redemption.
For holding funds, they need to be held until maturity, and some holding periods will be reflected in the fund name, such as the three-year holding period mixed fund of E Fund's high-quality enterprises. It should be noted that in the case of multiple fund holding transactions, the holding period is calculated separately for each transaction. If you want to redeem the fund at one time, you need to wait until the last fund you bought expires before you can redeem it all.
Purchase restriction
Fixed-term funds can only be bought during the open period. For example, if Hua' an Ruiming is mixed for two years, it can only be bought every two years. There are no buying restrictions on holding funds, and you can buy them at any time like other ordinary open-end funds.
Net fund value
Fixed-term foundations publish their net value once a week in the first closed period, usually on Friday night. The first closure period begins with the establishment of the fund contract, and then the net value will be announced every trading day.
Holding funds also publish their net value once a week before the initial opening. The first opening time has nothing to do with holding restrictions. Generally, the subscription will be opened within three months after the establishment of the fund contract, and the net value will be announced every trading day after the opening.