In the fund market, there is a strange phenomenon that funds make money while people don't. To solve this problem, we should make a breakthrough from the source of fund product design, and the design of closed-end funds can play a role to some extent. Due to the characteristics of closed management, investors can passively make long-term investments and pay attention to their day traders.
What are the benefits of participating in closed-end fund investment? Why buy a closed-end fund?
Closed-end funds have higher returns.
This is the most attractive point. From the statistical results, in 20 19, the arithmetic average rate of return of closed-end funds in the whole market was 44%, and that of ordinary open-end funds was 22%. Thus, the return rate of closed-end funds is much higher than that of open-end funds. Among closed-end funds, the top ones are mainly science and technology funds. Science and technology innovation board can be said to be the most growing board in the market, because it concentrates the best boards in China. The closeness of closed-end funds is conducive to the stability of fund shares, and it is easier for fund managers to manage and create higher returns.
Closed-end funds are more conducive to long-term investment.
Fund investment has always advocated long-term benefits in the future. It is also for this purpose that investors are encouraged to hold funds for a long time, including the stepped design of fund handling fees. Open-end funds provide good liquidity, but in the face of human weakness, liquidity is conducive to investment, and investors will apply for redemption because of this freedom, which is contrary to the concept of long-term investment of funds. Closed-end funds will have a certain closed period, during which investors cannot purchase and redeem.
Closed-end funds pay more attention to long-term returns.
Compared with open-end funds, closed-end funds are more conducive to fund managers to formulate long-term investment strategies, which can smooth short-term market fluctuations and bring long-term performance returns under the action of time. There is no need to worry that investors will redeem a large number of funds because of performance fluctuations, which will cause great changes in the fund scale and affect the normal implementation of the strategy.
Closed-end funds are more conducive to the balance of income and risk.
In economics, there is a theory called "impossible trinity" theory, which corresponds to investment, namely risk, profit and liquidity. These three factors cannot exist at the same time, so it is impossible to maintain the operation of closed-end funds with high returns, low risks and high liquidity at the expense of liquidity, and achieve the most effective balance between risks and returns, thus improving returns and reducing investment risks.