Can closed-end funds be traded during the closed period?
Yes, most closed-end funds are generally listed in the secondary market, so we can trade these closed-end funds through the same operation as stock trading. Under normal circumstances, the trading hours, trading principles, ups and downs, entrusting units and stocks of closed-end funds are basically the same, which undoubtedly brings us great convenience.
You may wonder, why can closed-end funds operate such operations in the secondary market when they are clearly in a closed period? For example, there is a process of issuing new shares before a company goes public. We paid in cash at that time, so we will get shares in the company. After the company goes public, we can freely circulate shares. The company's new shares here are fund shares of closed-end funds, while the shares we circulate are fund shares. The share capital issued by listed companies will not change, nor will the share of closed-end funds.
However, it should be noted that the minimum change unit of the fund's declared price is 100 or its integer multiple, and the maximum quantity is less than 100, which is somewhat similar to the stock quotation. However, the transaction commission is different. The transaction commission of closed-end funds is 0.25% of the transaction amount, and those less than 5 yuan will be charged according to 5 yuan. Shanghai Stock Exchange collects and registers transfer fees at 0.05% of the face value of the transaction, which is collected from investors by securities companies, and the registered companies and securities companies share it equally. The Shenzhen Stock Exchange charges the fund a monthly fee of 0.0025% of the face value of circulation. These are also what we should pay attention to in the operation.
Generally speaking, closed-end funds can only be traded in the secondary market during the closed period, and cannot be redeemed offline.