Open-end fund is a kind of fund, which can also be called * * * mutual fund. When fund sponsors set up a fund, the total size of the fund is uncertain, and they can sell their fund shares to investors according to their needs. The following are the redemption rules of open-end funds compiled by Bian Xiao, which are for reference only and hope to help everyone.

What are the rules for redemption of open-end funds?

1 The arrival time of open-end funds when applying for redemption is not fixed, which is mainly determined by the fund type. Under normal circumstances, the redemption time of money funds is T+ 1, the redemption time of bond funds is T+4 and the redemption time of stock funds is longer.

2 redemption fee is required for open-end funds to apply for redemption. Generally speaking, the redemption rate of open-end funds is between 0%- 1.5%. The longer the fund is held, the lower the redemption rate.

In open-end funds, under normal circumstances, all the funds raised will not be used for investment. Because of its flexibility in redemption, it is necessary to reserve some funds for investors to redeem at any time.

What are the benefits of open-end funds?

(1) interest income

The interest income of the fund includes two situations:

First, when the fund operates, the fund management company reserves a certain proportion of cash according to the regulations of the relevant management company in case investors redeem the share of the tomb gold at any time. The proportion of cash retained by funds in different countries and regions varies according to the investment strategy of funds. Generally speaking, the funds in Taiwan Province Province must be kept at 5% cash, which will generally be deposited in banks or other financial institutions, so that there will be certain interest income every once in a while. In addition, if the capital market is in a downward trend, fund managers may temporarily hold some cash for the sake of protecting investors.

(II) Dividend income

The dividend income of the fund refers to the dividend income obtained by the investment fund from the company by purchasing the shares issued by the joint-stock company in the primary market or the secondary market by virtue of its shareholder status.

Dividends generally have two forms: cash dividends and stock dividends. Cash dividends, also known as dividends, can directly get cash recipients; Stock dividends, also known as bonus shares, are shares given to shareholders by listed companies in a certain proportion. For listed companies, it is only a change in the internal structure of their own rights and interests, and no cash is needed. For investors, if the stock does not fall in proportion in the secondary market, it can still get income.

(3) Capital gains

The price of any security will fluctuate due to the supply of funds. If a fund can buy securities at a lower price and sell them at a higher price, the difference is called capital gain (note: the change of securities price here is entirely caused by the supply of funds, excluding the influence of its intrinsic value.

How to buy open-end funds

Managers of individual customers or institutional customers who open open-end fund accounts fill out the Application Form for Opening Open-end Fund Accounts as required and open it at the counter of our business department. Individual customers can also open their own open-end fund accounts through the self-service entrustment system (hotkey, telephone and Internet).

There is no charge for opening an open-end fund account. Fund accounts are divided by fund management companies. All open-end funds of the same fund management company open a fund account, but each fund management company needs to open a different fund account.

If the customer has opened an open-end fund account in other companies to buy funds, he only needs to register with the sales department with the open-end fund account. After registering the customer information of the fund system, individual customers can open an open-end fund account through self-help methods such as fund company hotline, telephone entrustment and online transaction, without going to the sales counter to open an open-end fund account.

If self-service fund account opening prompts: "Customer number does not exist", the reason is that the customer has not registered customer information in our fund system. Individual customers shall go to the counter of the business department with their ID cards, and institutional customers shall go to the counter with their company business license, organization code certificate, legal person certificate, legal representative ID card, legal person power of attorney and agent ID card.