Closed-end fund means that the fund sponsors limit the total amount of fund shares when setting up funds. After the total amount of fundraising is completed, the fund is announced to be established 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.

Closed-end funds have a fixed duration, during which the overall size of the fund is fixed. Generally listed on the stock exchange, investors can buy and sell fund shares through the secondary market.

Compared with closed-end funds, it is an open-end fund, which refers to the operation mode that the fund 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.

Extended data:

classify

From different angles, we can divide open-end funds into different categories.

According to whether it can be listed on the stock exchange, open-end funds can be divided into listed open-end funds and contractual open-end funds.

Listed and traded open-end funds refer to securities investment funds whose fund shares are listed and traded on the stock exchange, and both sides of the fund are investors. For example, transactional open-end index funds (ETFs) and listed open-end funds (LOF).

Contractual open-end fund refers to the securities investment fund whose fund share cannot be listed and traded on the stock exchange. Although such funds cannot be listed on the stock exchange, they can be traded through "subscription" and "redemption", and the trading parties of such funds are investors and fund companies.

According to different investment objects, open-end funds can be divided into stock funds, bond funds, mixed funds, money market funds, futures funds, option funds and warrant funds.

Baidu Encyclopedia-Open Fund