Funds are relatively liquid in various investment and wealth management products, and can generally be purchased and redeemed at any time. However, closed-end funds are less flexible and can only be redeemed after the closed period. So what happens when closed-end fund maturity investors don't apply for redemption? Will redeemable funds arrive automatically?

What happens when closed-end funds don't redeem at maturity?

Automatic redemption. Closed-end funds will be liquidated directly after maturity and redeemed automatically after liquidation. In other words, the fund company will calculate the investor's gains or losses according to the net value of the closed fund when it expires, and automatically return the funds to the investor's account.

If it is an open-end fund with a fixed term, if investors fail to redeem it during the opening period after the closing period, the fund will automatically enter the closing period, so investors need to wait until the next opening period to apply for redemption.

If the closed-end fund loses money during the closed-end period, investors have the following three options:

1 After the fund expires, it will be liquidated directly, and after liquidation, the fund will be redeemed automatically and bear the losses.

2. Extend the term of the fund contract, continue to start a new round of investment, and the total share of the fund owned by investors remains unchanged.

After the closed-end fund expires, it is necessary to convert the closed-end fund into an open-end fund and purchase or redeem the fund according to its net value, which requires manual operation.

In short, if an investor buys a closed-end fund, it will automatically return the gains and losses to the account according to the share held by the investor and the net value of the fund after expiration, without the need for the investor to redeem it manually.