Listed funds are generally closed-end funds and LOF funds. Closed-end funds must be listed and traded on the stock exchange, while LOF funds can be purchased from banks (the unlisted part), and those purchased from securities companies are the listed part. Therefore, LOF funds can perform arbitrage operations.
Converting high-risk fund products into low-risk fund products is also a form of redemption, such as converting stock funds into currency funds. This can reduce costs. The conversion fee is generally lower than the redemption fee, while the risk of money funds is low, equivalent to cash, and the income is higher than current interest. Therefore, conversion is also an idea of ??redemption.
Similar to regular investments, regular fixed-amount redemptions can be used for daily cash management and can also calm market fluctuations. Regular fixed-amount redemption is a redemption method that matches regular fixed-amount investment.
Extended information:
After the establishment of a closed-end fund, the fund shares held by investors can be listed and traded on the stock exchange, but the size of the fund will not change, so it is called "Closed-end" funds. That is to say, the "purchase and sale of shares" of open-end funds is conducted between investors and the fund company that sponsors this fund product, while the "purchase and sale of shares" of closed-end funds is conducted between investors.
The pricing of closed-end funds is formed based on the relationship between supply and demand during the buying and selling process of investors on the stock exchange, that is, the secondary market. The net value of a closed-end fund is calculated based on the fund's investment status and the total fund assets divided by the total fund shares. It is the amount of fund assets actually represented by each fund share. Price versus net worth is determined by supply and demand.