According to the different ways of establishment, funds can be divided into closed-end funds and open-end funds, and individual investors can participate in the transactions of these two types of funds, but there are great differences between them in trading methods and investment strategies. So how to distinguish closed-end funds from open-end funds? Let's take a look together.

1, transaction method

Closed-end funds need to entrust securities companies to buy and sell fund shares through stock exchanges, and cannot redeem fund shares. Closed-end funds are transactions between investors and can only be completed within the trading time.

Open-end funds can purchase and redeem fund shares through fund management companies or consignment platforms, and transactions are completed through investors and fund managers, and the trading time is not limited.

2. Changes in the size of the fund

The scale of closed-end funds is usually constant, and the redemption of fund shares is not supported during the duration, so they can only be traded through the secondary market. Open-end funds can be purchased and redeemed at any time, so the fund scale is constantly changing and sales are limited.

3. Transaction price

The transaction price of closed-end funds is influenced by market supply and demand. When supply exceeds demand, the fund price may be higher than the net value of the fund unit, and when supply exceeds demand, the fund share price may also be lower than the net value of the fund unit. The price of open-end funds is mainly determined by the net value of fund shares.

4. Time of publication of net value

The net value of closed-end funds is published once a week, and the net value of open-end funds is published once a day. Therefore, the publication of the net value of closed-end funds is delayed to some extent, which is not as full as that of open-end funds.

The above content about how to distinguish closed-end funds from open-end funds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.