The difference between open-end fund and closed-end fund;

1. Open-end funds refer to investors buying and selling funds directly from fund companies or their agents, with the net value of the funds as the buying and selling price. The scale of open-end funds will increase with the buying and selling of investors.

2. Closed-end fund refers to a fund that is no longer purchased directly or indirectly from the fund company by investors after the fund is raised, but from other buyers who own the fund in the stock market, so the size of the fund will not increase or decrease due to transactions. In addition, due to the expected ups and downs of the market, there may be a gap between the actual transaction price and the net value of the fund. (This is a discount or premium)

3. When establishing a fund, the promoters of closed-end funds limit the total amount of fund shares issued. After this total amount is raised, the fund will be declared and closed, and no new investment will be accepted for a certain period of time.

Extended data:

Open-end funds and closed-end funds are isomorphic, forming two basic modes of fund operation. Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand. Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance.

Open-end funds are not listed and traded, but can be directly sold by fund companies; You can also entrust an agency of a fund company, such as a commercial bank or a securities business department; You can also purchase and redeem online through the website of the fund company, and the fee can be discounted. Its scale is not fixed, and the fund unit can sell it to investors at any time or buy it back at the request of investors.

Open-end funds include general open-end funds and special open-end funds. In other words, after the issuance of listed open-end funds, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges.

Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Generally listed on the stock exchange, investors buy and sell fund shares through the secondary market. Closed-end funds are not allowed to accept new shares and withdraw shares for a period of time before the new round of opening. When opening up, you can decide how much to propose or invest, and newcomers can also buy shares at this time. Generally, the opening time is 1 week and the closing time is 1 year.

Closed-end fund refers to the fund sponsors who limit the total amount of fund shares when setting up a fund. After the total raised amount is completed and the necessary approval or filing, the fund will be declared and closed, and no new investment will be accepted for a certain period of time. The circulation of fund shares is listed on the stock exchange, and investors must bid on the secondary market through securities brokers in the future.

References:

Baidu Encyclopedia-Open Fund