There are several main reasons for the fund to be closed. The funds raised during the fundraising period need to be allocated to various assets as soon as possible. The fund will complete the first opening of positions within the closed period, and the setting of the closed period will keep the fund scale stable, which is convenient for fund managers to focus on the first opening of positions and allocate various assets such as stocks and bonds. Of course, the fund's position is usually not in one step, and it needs to be gradually opened according to market conditions. Therefore, the fund.
In addition to the closure period of new funds, there is also the closure period of fixed-term or holding-term funds, which is a fixed-term closure period after the fund is formally established. Similarly, fixed-term open-end funds cannot be purchased and redeemed during the closed period, while holding-term funds can be purchased at any time, but they must be held until the closed period after successful purchase. The closed period of these two types of funds is also set up to better operate the funds. On the one hand, it can force investors to make long-term investments and avoid short-term chasing up and down.
The new fund will generate income during the closed period, but it will not publish the net value of the fund every trading day like the old fund, but once a week, and it is usually on Friday, so you can also check the income of the fund during the closed period. Only the update frequency is slow.