Promote the strategic adjustment of the state-owned economy and realize the full transaction and circulation of property rights. At present, the capacity of China stock market is still very small, and it is impossible to realize the entry and exit of several open-end funds in a highly liquid state. China wants to expand the securities market, not only for the listing of open-end funds, but also to solve the problem of the circulation of state-owned shares, which is the only process of the transformation from planned economy system to market economy system. The marketization of products is the primary stage of market economy, the marketization of elements is a great progress, the marketization of property rights is a sign of the maturity of market economy, and the securities market was born to complete this function.

Open-end fund refers to a fund operation mode in which fund sponsors can sell fund shares or shares to investors at any time according to their needs, and can redeem the issued fund shares or shares at the request of investors.

Investors can buy funds through fund sales agencies, and increase the assets and scale of the fund accordingly, or sell their fund shares to the fund to recover cash, and reduce the assets and scale of the fund accordingly.

Closed-end funds have a fixed duration, which is relative to open-end funds. Refers to an investment fund whose fund scale has been determined before issuance and fixed within a specified period after issuance. During the duration, the overall size of the fund is fixed, generally listed and traded on the stock exchange, and investors can buy and sell fund shares through the secondary market.

Open-end funds and closed-end funds are isomorphic, forming two modes of fund operation.

Three basic principles should be grasped in investing in open-end funds.

First of all, you must know what your investment goal is. What is the deadline? How much investment risk can you bear? Have a correct understanding and judgment on the investment style, past operating performance and rate level of different fund management companies.

Second, there is no unrealistic expectation of its rate of return, because a certain degree of risk always exists.

Third, the open-end fund is a medium-and long-term investment variety and an effective way to share the long-term growth of the capital market, which is not suitable for short-term speculation.

Evaluating the performance of funds should be long-term, and only funds that can stand the test of time are truly worth investing.

Short-term frequent purchase and redemption is not only high in investment cost, but also difficult to obtain expected returns.

The characteristics of open-end funds are as follows:

First, the unique redemption mechanism of open-end funds has played an effective role in restraining fund managers. If the fund's performance is poor, investors will redeem it, resulting in a decrease in fund assets. This mechanism will encourage fund managers to continuously improve their management performance. In 2007, most open-end funds created good investment returns for investors.

2. Open-end funds trade with the net value of fund shares, so there will be no difference between price and net value in closed-end fund transactions, which ensures that investors can fully enjoy the return brought by the appreciation of fund assets.

Third, the liquidity of open-end funds is good. Investors can apply for redemption of fund shares at any time according to their own capital needs, which meets the demand for liquidation.

4. Open-end funds are highly transparent in information disclosure. In addition to quarterly, semi-annual and annual reports, the net value is also published daily to facilitate investors to make decisions at any time.

Five, open-end fund investment is convenient, redemption can be operated through direct selling institutions, online trading systems or consignment banks, brokerage outlets and other places. There are also advantages in service, providing exclusive consultants through SMS, email and bills to provide investors with comprehensive and thoughtful services.