Closed-end funds do not belong to OTC funds or OTC funds alone. Usually, closed-end funds have both on-site funds and off-site funds, which cannot be generalized. Closed-end fund is a kind of trust fund, which refers to a kind of securities investment fund that has determined the total amount of issuance and the period of issuance when the fund is established, but the total amount of issuance has not changed within the specified period after issuance.

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

1. The redemption methods of closed-end funds and open-end funds are different: after the initial issuance of open-end funds, the term does not exceed three months, and the purchased funds can be redeemed at any time; However, closed-end funds cannot be redeemed during the closed period of the fund;

2. The issuance scale of closed-end funds is different from that of open-end funds: under normal circumstances, there is no scale limit for the issuance of open-end funds, and the overall size of the funds will increase or decrease with the purchase or redemption of funds by investors; When the closed-end fund was established, the total amount and period of issuance of the fund had been determined, so the scale was fixed;

3. The duration of closed-end funds and open-end funds is different: open-end funds have no fixed duration, and investors can redeem their funds at any time; Closed-end funds have a fixed closed term, usually as long as 10- 15 years;

4. The price calculation standards of closed-end funds and open-end funds are different: the subscription and redemption prices of open-end funds are usually the net asset value of the fund issuer plus the corresponding formalities fees; The transaction price of closed-end funds will be affected by the relationship between market supply and demand.