Closed-end funds belong to trust funds, which means that the total amount of approved fund shares is fixed within the term of the fund contract. Fund shares can be traded on legally established stock exchanges, but fund share holders may not apply for redemption. The relationship between open-end fund and closed-end fund: the isomorphism of open-end fund and closed-end fund has become two basic modes of fund operation. Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand.
Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance.
Open-end funds are not listed and traded, and are generally purchased and redeemed by banks. The scale of the fund is not fixed, and the fund unit can sell it to investors at any time or buy it back at the request of investors. Closed-end funds are not allowed to accept new shares and IPOs for a period of time before the new round of opening. When opening up, you can decide how much to bid or reinvest, and newcomers can also buy shares at this time. Generally, the opening time is 1 week and the closing time is 1 year.