According to whether the fund can be redeemed, the fund can be divided into open-end fund and closed-end fund. So, will closed-end funds lose money? What about the loss of closed-end funds? The following small series has prepared relevant content for your reference.
What about the loss of closed-end funds?
Closed-end funds have a fixed closed period, during which no transactions can be made. Investors can only wait until the fund is listed or traded after the closed period.
It should be noted that some closed-end funds will be listed and traded on the stock exchange. Investors can transfer funds to the on-site market for trading and selling, or they can directly buy funds on the site to cover their positions. However, the factors affecting the rise and fall of on-site funds and off-site funds are different. Even if you make up the position, you may not be able to reduce the cost or profit.
What about the loss of closed-end funds?
A closed-end fund is a fund with a fixed term and scale set up by a fund management company, and investors cannot redeem their shares within the set period. If a closed-end fund loses money, investors can consider the following measures:
1. Patience: Closed-end funds usually have a long investment cycle, so investors can wait patiently for market fluctuations and fund rebound. However, it should be noted that market risk, fund management ability and other factors may affect the performance of the fund.
2. Share transfer: If investors can't wait for the fund to rebound, they can consider transferring their shares to other investors. However, it should be noted that the transfer of shares needs to find buyers who are willing to buy, and it is likely to face a large discount in the case of fund losses.
3. Redemption of shares: If investors need funds, they can consider redeeming shares after the closure period. However, it should be noted that closed-end funds usually have a certain redemption fee and redemption period, and may need to pay extra fees or wait for a period of time to redeem.
4. Consulting professionals: If investors are uncertain about the performance and future trend of the fund, they can consult professionals to understand the market trend and the situation of fund management companies, so as to make better investment plans.
What if a closed-end fund loses money?
Generally speaking, no matter whether the fund is closed or not, the fund will not lose money. Because only when the net value of the fund is 0 yuan, the fund may lose money, but the net value of the fund generally will not go to 0 yuan. Even if the fund suffers serious losses and meets the delisting conditions, there will be some assets after liquidation and delisting.
If the new fund loses heavily during the closed period and cannot be redeemed, it can continue to hold it after the closed period and redeem it after the profit. The loss of the new fund is only short-lived, so investors should be more patient.
If the closed-end fund loses money during the closed-end period, it cannot be sold, and it cannot be sold until the product expires. Some closed-end funds can be sold in the secondary market, and then investors can make up their positions and reduce their positions on rallies according to the ups and downs of the secondary market to reduce costs and losses.
Generally speaking, it is necessary to be patient when buying a fund loss. If you sell it as soon as it falls, buy it when you see it rise. It's easy to chase up and kill down.
What about the loss of closed-end funds?
1. Complement.
Buy some during the decline of the fund, spread the fund cost evenly by increasing the number of fund holdings, so as to spread its risks and wait for the fund to rebound. It should be noted that investors should control their positions reasonably and buy in batches when covering operations.
Step 2 cut the meat out
Investors will also choose to sell all their funds. This situation is generally that investors think that individual stocks will continue to fall in the later period, and there is no hope of a rebound, so they will cut their meat.
Step 3 change position
Investors believe that the fund will continue to fall in the later period, and they can choose to sell and buy stronger funds to make up for the losses.
4. Hold your ground.
If investors are not very comfortable with their investment strategy, but make mistakes in operation, they can choose to hold positions and wait for the fund to rebound to achieve the purpose of closing positions.