Unlike open-end funds, the scale of closed-end funds is constant. The way to buy and sell is through the stock exchange, just like stocks. The transaction object is other investors, not through banks and other consignment agencies, nor is the transaction object the fund company itself. The transaction cost of closed-end funds is lower than that of open-end funds and stocks.
Extended data:
Closed-end funds have a fixed duration, generally more than 5 years, generally 10 years or 15 years. Generally, the fund shares that have been issued within this period cannot be redeemed. Although this kind of fund can be raised under special circumstances, it must meet strict legal conditions. So in general, the size of the fund is fixed.
When a closed-end fund is initiated, investors can subscribe to the fund management company or sales organization; When closed-end funds are listed and traded, investors can entrust brokers to buy and sell at market prices on the stock exchange. When investors invest in open-end funds, they can purchase or redeem them from fund management companies or sales organizations at any time.
Baidu encyclopedia-closed-end fund