According to China Finance Network, the term of closed-end fund refers to the investment term of the fund, that is, the sum of the fund's raising period and operation period. Closed-end funds raise funds from the public during the raising period. After the end of the raising period, the fund manager stops raising activities and starts the operation period. The investment period of the fund is generally between 3 years and 10 years. Liquidate the fund at the end of the period and return the investment income or funds to the fund share holders.

During the existence of closed-end funds, investors can't buy, sell or redeem fund shares at will, but only get investment income or return funds when the fund is liquidated. In contrast, there is no time limit for open-end funds, and investors can buy or redeem fund shares at any time. Closed-end funds have a long term and are suitable for long-term investment and capital planning, but there are also risks such as poor liquidity and opaque information.