Closed-end funds, as the name implies, are funds that are closed within a certain period of time. In contrast, compared with closed-end funds, open-end funds can be purchased at the beginning of the fund's establishment and at some later time, and can also be realized at any time according to the rules announced by the fund company, which can be said to be quite flexible.
The basic rules of closed-end fund redemption include two points, one is the redemption price of the fund, and the other is the redemption time. After the closed-end fund expires, the fund company will return the funds to the investors according to the net value of each fund, including the principal and income. Before the expiration of closed-end funds, individual redemption involves redemption fees, depending on the different provisions of the fund. The redemption fee is stipulated in the contract. For investors who hold closed-end funds, we should pay attention to the redemption time. Closed-end funds have a fixed opening period and a fixed locking period, and can only be redeemed during the opening period, while the locking period is the shortest holding time, and can only be redeemed on a specific date after three months.
In addition, the redemption of closed-end funds also involves how to calculate the net redemption value. Fund companies will calculate the net value of closed-end funds according to the rules for estimating the net value of monetary funds. Calculate the net value of each fund according to the fund share and net asset value, and update the net value according to the release time. Investors must calculate the redemption amount according to the latest net value when redeeming closed-end funds.
In the redemption process of closed-end funds, investors need to pay attention to some matters, such as the signing of redemption procedures, identification, verification of bank account information and so on. To ensure the safety and accuracy of funds. In addition, due to the natural illiquidity and closeness of closed-end funds, investors should be very clear about their capital needs and risk tolerance before investing in closed-end funds to avoid unnecessary losses when redeeming.
In short, the redemption rules of closed-end funds are an important link in the process of investors investing in closed-end funds. Strictly abide by the regulations and market rules of fund companies, reasonably choose the open period and lock-in period, and pay attention to risks and demands, which will be the key to investing in closed-end funds.