What are the benefits of participating in closed-end fund investment?
The expected return is higher.
From the statistical results, in 20 19, the arithmetic average rate of return of closed-end funds in the whole market was 44%, and that of ordinary open-end funds was 22%. Thus, the return rate of closed-end funds is much higher than that of open-end funds. The closeness of closed-end funds is conducive to the stability of fund shares, and it is easier for fund managers to manage and create higher returns.
It is easier to insist on long-term investment.
Closed-end funds will have a certain period of closure, during which investors can not purchase and redeem, and investors are forced to make long-term investments.
Pay more attention to long-term returns
Closed-end funds are more conducive to fund managers to formulate long-term investment strategies, which can smooth short-term market fluctuations and bring long-term performance returns under the action of time. There is no need to worry that investors will redeem a large number of funds due to performance fluctuations, which will affect the normal implementation of the strategy.
Strive for higher returns at lower risk.
In economics, there is a theory called "impossible trinity" theory, which corresponds to investment, namely risk, profit and liquidity. These three factors cannot exist at the same time, so it is impossible to maintain the operation of closed-end funds with high returns, low risks and high liquidity at the expense of liquidity, and achieve the most effective balance between risks and returns, thus improving returns and reducing investment risks.