The total number of fund units of open-end funds is not fixed, which can be issued according to the development requirements, and investors can also redeem them. The redemption price is equal to the current net asset value minus the handling fee.

Because investors can freely join or quit this open-end investment fund, and there is no limit on the number of investors, they are also called * * * mutual funds. Most investment funds are open.

The total amount of closed-end funds is limited. Once the issuance plan is completed, no additional issuance will be made. Investors are not allowed to redeem, but fund units can be publicly transferred on the stock exchange or over-the-counter market, and the transfer price is determined by market supply and demand.

The differences between them are as follows:

1. The variability of fund size is different.

2. The transaction prices of fund units are different. The buying and selling price of the fund unit of the open-end fund is based on the net asset value corresponding to the fund unit, and there will be no discount. The price of closed-end fund units will be more affected by the relationship between supply and demand in the market, and the price fluctuates greatly.

3. The buying and selling channels of fund units are different. Investors of open-end funds can buy or redeem funds directly from fund management companies at any time, and the handling fee is low. The trading of closed-end funds is similar to stock trading, which can be traded in the securities market, and it needs to pay handling fees and securities transaction tax. Generally speaking, the cost is higher than that of open-end funds.

4. Different investment strategies. Open-end funds must keep part of the funds in order to cope with investors' redemption at any time, and long-term investment will be limited. However, closed-end funds can not be redeemed, so they can make full use of funds, make long-term investments and achieve long-term operating performance.

5. The required market conditions are different. Open-end funds are flexible and easy to scale, so they are suitable for financial markets with high openness and large scale. On the contrary, closed-end funds are suitable for financial markets with imperfect financial system, low openness and small scale.