The closed period of open-end fund refers to a period of time after the fund is established that it does not accept redemption. Because newly established funds need a relatively long period to gradually complete the shareholding layout according to market conditions, fund contracts generally have a closed period. According to China's "Pilot Measures for Open-end Securities Investment Funds", the closed period after the establishment of open-end funds shall not exceed 3 months.

If the fund closure period is too short, there will be a problem that the fund must be redeemed before the layout is completed, which will affect the net value of the fund unit and the rights and interests of investors. Therefore, the short closure period may be relatively risky.

Unless otherwise agreed by the fund company, in order to ensure the rights and interests of investors, the fund will not distribute profits during the closed period.