Due to the diversification of fund types in the fund market, the relevant operating rules are not uniform, resulting in a lot of professional vocabulary. As an investor, you need to understand the meaning. What does 2+3 fund duration mean?

What does 5+2 fund duration mean?

The so-called "5+2" fund with duration means that the investment period (closed period) of the fund is 5 years, and the withdrawal period is 2 years, that is, the fund will invest for 5 years, and the limited partner may not withdraw within 5 years. After five years, the limited partner can choose to quit, or he can choose to postpone his exit for two years, that is, quit after seven years. "7+2" fund and "10+2" fund are the same.

The relationship between fund raising period, closed period and duration;

Fund raising period

The fund raising period is from the announcement of the fund prospectus to the establishment of the fund, which can actually be said to be the issuance period of the fund. During this period, the fund company will sell the fund through direct sales, consignment agencies or banks.

Closing period

At the end of the fund raising period, it will enter the closed period of the fund. During the closed period of the Fund, investors cannot purchase and redeem the Fund. In the later period of fund closure, the fund subscription is generally opened first, and the investment cannot be realized immediately. The fund closure period is generally not more than three months.

duration

After the fund closure period, investors can buy and sell funds normally, that is, the duration of the fund. At this time, the fund subscription is called the fund subscription, and the fund price is different from the fund subscription, which is calculated according to the closing price of the day. The duration of closed-end funds is at least 5 years, generally 10- 15 years. Closed-end funds can be extended after expiration. As long as the fund holders recognize the operation of the fund, the duration of the open-end fund can last for a long time.