Closed-end fund is the earliest fund model. At the time of its establishment, it has limited the total issuance of fund units. After the establishment, before the expiration of the contract, the scale of the fund will remain fixed and no new investment will be accepted.

There is no pressure to redeem closed-end funds, and managers can make long-term investment layout. Trading in the securities market, the cost is very low, only three thousandths. The disadvantage is that managers lack incentive mechanism and their business performance may not be outstanding. Open-end funds are under great pressure to redeem, so it is necessary to reserve some funds at all times to deal with redemption, and the utilization rate of investment funds is poor.