Closed period, in short, is that the fund does not accept investors' applications for subscription or redemption during this period. If it cannot be purchased, converted or redeemed during the closed period, it is called subscription if it is bought during the issuance period, that is, before the end of the sale. When the closure period has passed and it is reopened, it is called subscription.
The new fund will be closed for up to 3 months. On the one hand, it is to facilitate the fund backstage (registration center) to make the best preparation for daily subscription and redemption; On the other hand, fund managers use this period of time to start buying stocks and bonds with the raised funds, making investments and opening positions.
Buy funds during the issuance period, and the rate is slightly lower; After the closure period, the subscription rate is slightly higher. It seems that nothing is more cost-effective. For example, if you want to buy a new fund, you know nothing about its future performance, and you have no information to refer to. Subscription may be blind, but subscription may have many choices. Decide whether to buy or not after 3 months. Funds bought during the issuance period can only be redeemed or converted into other funds.
Closed period of private equity fund
Unlike Public Offering of Fund, Sunshine Private Equity Fund will generally set up a closed period, and after the closed period, a product open day will be set up every month. The closed period is not the closed period after the initial public offering and formal establishment of the public offering fund in the usual sense, but refers to the shortest holding period after investors buy the fund themselves, which has nothing to do with the time of fund establishment.
The closure period is generally 3 months, 6 months and 1 year. During the closed period, investors can't sell, but they can continue to buy, no matter whether the performance of private equity funds is up or down.
In addition to the "closed period" agreement, some sunshine private equity funds will also set a quasi-closed period, which is another period after the closed period. After the closure period, investors can sell products once a month. However, if there is a quasi-closed period, investors will sell products during this period, which will involve redemption fees. The general rate is 1.5-2%.