1. Trust funds refer to investment funds whose scale is determined before issuance, fixed within a certain period after issuance and traded in the securities market. Because closed-end funds are traded by bidding in securities trading, the transaction price is affected by the relationship between market supply and demand, which does not necessarily reflect the fund's net asset value, that is, the transaction price of closed-end funds has a premium and discount phenomenon relative to its net asset value.
Second, the practice of foreign closed-end funds shows that the transaction price often has the price fluctuation law of first premium and then discount. Judging from the operation of closed-end funds in China, no matter how the fundamental situation changes, the transaction price trend of closed-end funds in China has never deviated from the price fluctuation law of first premium and then discount.
Three, open-end funds and closed-end funds * * * constitute 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.
Fourth, before 2004, open-end funds were not listed on the exchange, but were generally purchased and redeemed through consignment agencies or direct selling centers such as banks. After 2004, China innovated the operation mode of open-end funds, allowing some open-end funds to be listed and traded on the stock exchange, and became a listed open-end fund (LOF). 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; Without duration, it can theoretically exist forever; The price is determined by the net asset value.
Fifth, closed-end funds have a fixed duration, during which the fund scale is fixed, generally listed and traded on the stock exchange, and investors buy and sell fund shares through the secondary market; You are not allowed to accept new shares and offer shares for a period of time before the new round of opening up. When opening up, you can decide how much you offer or how much you reinvest, and newcomers can also buy shares at this time; Generally, the opening time is 1 week and the closing time is 1 year; The price is determined by the relationship between supply and demand, and the net value of the fund will affect the fund price, but the two are not unified. Usually, closed-end funds trade at a discount.
Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their fund shares at any time at the request of investors. Open-end funds have become the mainstream of the international fund market. More than 90% of the fund markets in the United States, Britain, Hongkong and Taiwan Province Province are open-end funds.