The duration of closed-end funds should be more than 5 years, and can be extended through certain legal procedures after the expiration of closed-end funds. Investors of closed-end funds can't redeem their fund shares from the issuer during the fund's existence, and the realization of fund shares must be listed and traded on the stock exchange.

Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance. Closed-end funds belong to trust funds, which means that the total amount of approved fund shares is fixed within the term of the fund contract. Fund shares can be traded on legally established stock exchanges, but fund share holders may not apply for redemption.