Closed-end fund is an important fund type, and investors often talk about it in the market. So, how about closed-end funds? Unclear friends, come and have a look with me!

First, let's look at the definition of closed-end fund. It is understood that closed-end funds are relative to open-end funds, specifically referring to securities investment funds that have determined the total amount of issuance and the issuance period at the time of establishment, and fixed the total amount of issuance within the prescribed period after issuance.

As for whether closed-end funds are good or not, we can comprehensively consider their advantages and disadvantages:

(A) the advantages of closed-end funds

1, closed-end funds decide that investors can't redeem during the closed period and can only buy and sell fund shares in the secondary market. In this case, investors don't have to worry about the redemption during the duration of the fund, which is a worry-free and labor-saving investment method.

2. Compared with open-end funds, closed-end funds are cheaper. In other words, allocating a certain number of closed-end funds at the current point can gain the low-price advantage that other fund products do not have. So for investors, going against the market may be profitable.

(B) the shortcomings of closed-end funds

Investors who buy closed-end funds need to bear the risk of stock market decline. During the closed period of the fund, investors can't redeem it, and the closed-end fund is held for a very long time. In this case, if the stock market falls sharply, it is likely to cause some losses to investors of closed-end funds.

To sum up, closed-end funds have advantages and disadvantages. When investors buy closed-end funds, they should choose according to their advantages and disadvantages to see if they are suitable for them.