Closed period means that when a new fund is established, investors cannot purchase and redeem fund shares for a period of time. According to the Measures for the Administration of the Operation of Securities Investment Funds, the closed period of the funds shall not exceed 3 months.
The new fund will be closed for several months. On the one hand, it is to facilitate the fund backstage (registration center) to make the best preparation for daily subscription and redemption; On the other hand, fund managers use this period of time to initially use the raised funds to buy stocks and bonds for investment preparation.