Open-end fund refers to a fund operation mode in which fund sponsors can sell fund shares or shares to investors at any time according to their needs, and can redeem the issued fund shares or shares at the request of investors. Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly.

There are six major investment risks in open-end funds:

(1) Liquidity risk

(2) Unknown purchase and redemption price risk

(3) Investment risk (including stock investment risk and bond investment risk)

(4) Institutional operational risks (including system operational risks, management risks and operational risks)

(5) Force majeure risk

(6) Market risks (including policy risks, economic cycle risks, interest rate risks, operating risks of listed companies, purchasing power risks, etc.). )

Open-end fund investment strategy:

The investment strategies of funds are different. Since closed-end funds cannot be redeemed at any time, all the funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term business performance. On the other hand, open-end funds must keep some cash so that investors can redeem it at any time, but not all of it is used for long-term investment. Generally invest in assets with strong liquidity.