Closed-end funds refer to funds whose redemption is restricted within a certain period of time. This is a concern of many investors. This article will answer you from five aspects.
# # What is a closed-end fund?
Closed-end fund is a kind of fund, which is characterized by raising funds from the public during the raising period. After the end of the fundraising period, no more funds will be raised from the public, but investment will be made within a certain period in accordance with the provisions of the fund contract. When the deadline comes, the fund property will be liquidated and the proceeds will be distributed to investors. Closed-end funds are characterized by long investment period and poor liquidity.
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The investment period of closed-end funds is usually 1-3 years. After the expiration of the term, the fund company will conduct liquidation and distribute the fund assets. During this period, redemption is generally not allowed. If investors are in urgent need, they can redeem them by transferring shares.
# # Ways of transferring shares
Share transfer means that investors sell their fund shares to other investors in order to obtain funds. Investors can list their fund shares and wait for other investors to buy them. It can also be transferred through the counter sales of fund companies or brokers.
# # Matters needing attention in share transfer
Please pay attention to the following points when transferring shares:
1. Transfer of shares requires a handling fee, which is generally 1%-2%.
It takes time and energy to find a buyer to transfer shares.
3. Transfer of shares requires determination of the transfer price. If the price is too high, no one may buy it, and if the price is too low, it may lose money.
4. Need to determine the transfer time of shares. Too short a time may not find a buyer, and too long a time may affect the investment income.
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? Although closed-end funds have a long investment period and poor liquidity, investors can redeem them by transferring shares. Investors need to pay attention to the handling fee, time, price and buyer of the transfer share in order to obtain the best investment income.