After the fund has successfully raised enough funds to declare the fund contract effective, it will not accept investors' application for fund share redemption for some time. On the one hand, the closure period is set to facilitate the fund backstage to make the best preparation for future purchase and redemption; On the other hand, the fund manager can complete the preliminary investment arrangement according to the situation of the securities market.
The process from raising funds to investing in open-end funds is divided into four periods: raising period, capital verification period, closing period and normal subscription and redemption period. During these four periods, investors bought and sold fund shares in different ways.
Extended data:
After the end of the fundraising period, the Foundation will enter a capital verification period of no more than 7 days. After the capital verification, the fund contract was formally established, and then the fund entered a closed period, and the fund contract has come into effect. However, during the closed period, the Fund does not accept investors' requests to purchase or redeem fund shares, and investors can neither buy nor sell fund shares during this period.
Many funds are open for subscription in the later period of the closed period, that is to say, at this stage, investors can subscribe for funds according to the net asset value of the funds, but they cannot redeem their fund shares, and the closed period of the funds shall not exceed 3 months.
The scale of the fund is not fixed, but an investment fund that can issue new shares or be redeemed by investors at any time according to market supply and demand. Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance.
A fund that pursues both long-term capital appreciation and current income. Such funds mainly invest in bonds, preferred stocks and some common stocks, and these securities have a relatively stable portfolio ratio in the portfolio.
Generally, 25% ~ 50% of the total assets are used for preferred stocks and bonds, and the rest are used for common stock investment. Its risk and return are between growth funds and income fund.