Open-end funds will have a closed period at the beginning of their establishment, and the longest closed period is 3 months. During the closing period, the fund manager will initially allocate the fund assets, so what are the benefits of the three-month closing period of the new fund?

Will the new fund be closed for three months?

When the new fund enters the closed period, the fund manager begins to allocate the fund assets, which depends on the trend of the fund assets. For money funds, it is generally profitable after entering the closed period, but for bond funds, stock funds and hybrid funds, whether there is income depends on the fluctuation of the underlying assets. If the overall increase is profitable, there will be no income.

During the closed period of the fund, subscription and redemption are not allowed. At this point, investors need to bear the risk of fund net value fluctuation. Open-end funds generally go through four periods from raising to investment: raising period, capital verification period, closing period and normal subscription and redemption period, in which the raising period generally ranges from one to three months. According to the Measures for the Operation and Management of Securities Investment Funds, the closed period of open-end funds shall not exceed three months.

The above is about the sharing of fund content, and I hope it will help everyone.