The so-called closed-end financial management means that this financial management product has a fixed redemption date announced in the product manual. If the product reaches the specified expiry date, this financial management product will not be redeemable in advance.

Our most common closed-end financial products include closed-end bank financial products, which means that products that can be subscribed and redeemed can only be developed in a fixed cycle.

Relevant knowledge supplement: 1. Closed financial management products refer to financial products that cannot be redeemed in advance before the fixed redemption date published in the product manual or the product expiration date.

Common closed-end financial products include closed-end bank financial products, which are developed for subscription and redemption in fixed cycles.

In addition, the more common type of closed-end financial products is closed-end fund products. The definition of such closed-end funds is mainly in comparison with open-end fund products.

2. The difference between closed financial products and open financial products 1. Different returns Generally speaking, closed financial products have higher returns, and they cannot be redeemed in advance or have restrictions such as early redemption.

Open-type financial management fixed investment rules are simple, and the fixed investment amount can be operated if the fixed investment amount meets the integer multiple of the increment. The fixed investment time and frequency are not limited during product working days, but the yield is lower than that of closed financial management products.

2. Different fund liquidity. Compared with closed financial products, open financial products have lower returns, and their biggest advantage is that they have better liquidity and can be redeemed in advance, which is more convenient for temporary capital needs.

However, for closed financial products, financial funds cannot be used during the product’s duration.

3. Different cycles. If the funds are to be used frequently, it is recommended to purchase open-type financial products. Because the cycle is shorter, you can redeem them in time when you need money. If you do not redeem open-type financial products, they are generally purchased automatically on a recurring basis.

If you have a sum of funds to invest within a certain period, you can purchase fixed-term financial products. 4. Closed-end financial products have relatively high returns and poor liquidity. They cannot be redeemed in advance or there are related issues with early redemption.

limit.

5. Open-ended financial products refer to financial products that can be redeemed at any time and have good liquidity.

Differences from closed-end financial products: 6. Compared with closed-end financial products, open-end financial products have lower returns, but have better liquidity and can be redeemed in advance.

7. If the user's funds are to be used frequently, it is recommended to purchase open financial products, because the cycle is short and the money can be redeemed in time when the money is needed.