You finally read the last few articles and learned some knowledge. Be sure to strike while the iron is hot to consolidate and study more. Let's continue to look at the fund from the perspective of the fund and the manager.

This paper talks about closed-end funds.

Looking back, open-end funds accept daily purchase and redemption, and their total share quantity can be changed. If there is a "net subscription" on that day, the fund share will increase; If there is a "net redemption" on that day, the total share of the fund will decrease.

It is precisely because of the above characteristics of open-end funds that the management of open-end funds has two troubles: if it is "net redemption", the fund needs to transfer cash to investors; If it is a "net purchase", it is also necessary to consider whether to make some necessary investment arrangements for these cash.

If you are a fund manager, will you feel a little troublesome? After all, this has little to do with the investment itself.

If the fund's "net subscription" and "net redemption" are still stable at ordinary times, it will have little impact, but it will be very troublesome if drastic changes occur. So this is a big and small problem of fund management. Sometimes it even drags down the performance of the fund.

For example, in a bull market, a large number of "net subscriptions" suddenly added a sum of cash to the account, which was not allocated into stocks in time, which would drag down the overall performance of the account.

For example, in a bear market, there are a large number of "net redemptions", which leads to the fund having to sell shares for investors to redeem, which in turn leads to a further decline in share prices, which in turn leads to panic. Panic will lead some people to demand the redemption of the fund, which in turn will lead the fund to sell its shares ... This is a vicious circle. If the fund manager is played like this, it will be bad for everyone.

Is there a fund that does not have this difficulty? Yes, it is a "closed-end fund".

The total share of closed-end funds is fixed. Of course, closed-end funds also have a raising period at the beginning, and there is an initial total share after raising, but the total share of such funds remains unchanged after the opening period.

In other words, such funds do not accept subscription at the beginning of the raising period (the same subscription), and then they do not accept subscription and redemption. If subscription and redemption are not accepted, the total share of the fund will remain unchanged.

What should I do if I want to change money? Can't you redeem it?

No, there is a way. Closed-end funds are listed and traded. Although you can't apply for redemption from the fund company, you can sell your fund share to others.

This is the essence of listed transactions: matchmaking. You don't need to redeem it, just sell it to others. If someone gives you money, you give him your share.

What are the benefits of this fund? For fund managers, it is less difficult to operate than open-end funds.

Assuming that the management level is exactly the same-the investment direction, investment ratio and fund management fee rate are the same, this paper studies the management difficulty of open-end funds and closed-end funds. Closed-end funds have one advantage.

This is because if you can't purchase and redeem, there will be no "net purchase" and "net redemption", no redemption pressure, no need to reserve 5% cash, and no need to worry about suddenly adding a sum of money.

Because of this feature, closed-end funds can invest according to the established investment plan, and will not disrupt the investment rhythm because of the factors of subscription and redemption.

There is another point that deserves your attention. Only two types of funds, their fund managers have different mentality.

Open-end funds can be purchased and redeemed daily, and more purchases can bring more management scales, more management scales and more fund management fees.

Therefore, fund managers of open-end funds often attach great importance to short-term performance, which is reflected in the ranking pressure. To do a good job in short-term performance, we must do a good job in band operation. Short-term performance is good, ranking high, and agency channels are willing to recommend it. Once recommended, it will keep coming.

This emphasis on short-term performance is a double-edged sword. After all, in my eyes, being a band needs at least a demigod.

Don't forget that open-end funds can be redeemed. If the fund performance is worse than others, many people will choose to redeem it, so the fund management scale will be reduced and the management fee will be less. Moreover, the so-called bad is not to lose money, but to earn less than others.

You see, closed-end funds can't be purchased or redeemed. Therefore, the fund manager can ignore the short-term performance, regardless of whether the short-term fund performs well or not, the management scale will not be affected, and the investment plan can be better implemented.

Closed-end funds test the long-term investment ability of fund managers.

What do you think of the above? In fact, the source we talked about recently is how to calculate the net value of funds, which has been carried out through the basic knowledge of subscription and redemption.

If you want to invest, you must lay a solid foundation, which is a firewall with less losses and no losses. Learn from the God of Wealth next door and have a good sleep.