2. The share of closed-end funds is fixed. After the fund raising is completed, the fund shares will be listed and traded on the stock exchange. Investors can only entrust securities companies to buy and sell closed-end fund shares on the stock exchange at market prices, and the transaction is completed among investors.
3. The transaction price of closed-end funds is mainly affected by the relationship between supply and demand in the secondary market. When the demand is strong, the transaction price in the secondary market of closed-end funds will exceed the net value of fund shares, and there will be a premium transaction phenomenon; On the other hand, when the demand is low, the transaction price will be lower than the net value of fund shares, and there will be a discount transaction.
4. The share of closed-end funds is fixed, even if the fund performs well, its expansion ability is greatly limited. If the performance is not satisfactory, fund managers usually will not face the direct pressure of operation and liquidity management because investors cannot redeem their investments.
5. China's Securities Investment Fund Law stipulates that the closed-end fund contract must stipulate the closed-end period of the fund. After the closed-end fund expires, it can be extended or converted into an open-end fund through certain legal procedures.