1. How to redeem exchange-traded closed-end funds when they expire. Closed-end funds are exchange-traded funds and generally have a closed period of 5-15 years. During the closed period, there is no fund subscription or redemption. Yes, fund shares can only be bought and sold on the secondary market. That is, when an investor sells a fund on the secondary market, the investor can buy the fund accordingly. Regardless of buying or selling, the total number of fund shares is different. changing.
After the expiration of on-market closed-end funds, there are generally three ways to deal with them: The first one: Fund liquidation, that is, the investment is ended. The fund company calculates the expected gains or losses of investors based on the net value of the fund and returns the funds. to investors. The second type: Fund extension, that is, extending the fund contract period and continuing to start a new round of investment. The total fund shares owned by investors remain unchanged, but this method is rarely used. The third type: Convert to an open-end fund. Investors can subscribe or redeem the fund according to the net value of the fund, but it requires manual operation by the investor and will not be automatically redeemed.
2. Characteristics of closed-end funds
1. Long investment period Closed-end funds have a relatively long closing period, and early redemption is not supported midway.
2. There are premium or discount transactions. Closed-end funds can be bought and sold in the secondary market according to the transaction price, and the transaction price changes in real time due to the influence of market supply and demand. Therefore, there will be problems when trading closed-end funds. If the transaction price is not equal to the net value of the fund, there is a premium or discount transaction. I hope the above information on how to redeem on-market closed-end funds upon maturity will be helpful to everyone. Warm reminder, financial management is risky, so investment needs to be cautious.