As we all know, open-end funds can be purchased and redeemed at any time in the primary market or OTC market. Investors love to buy open-end funds. For some users who have extra funds, they can also buy closed-end funds. However, closed-end fund holders are not allowed to apply for redemption, which leads to the emergence of semi-closed funds. So, what's the difference between semi-closed and closed-end funds?

what's the difference between semi-closed and closed-end funds?

1 The operation mode between semi-closed and closed-end funds is different. The operation mode of semi-closed funds is to open subscription and redemption regularly every year during the fund operation period. However, closed-end funds cannot be redeemed during the closed period and can only continue to trade on the market.

2 semi-closed fund trading mode has the advantages of low risk and fixed rate of return. Risks and returns are acceptable, and liquidity is also guaranteed. However, closed-end funds cannot be bought or sold in the primary market or OTC market at any time, and the risks existing in the closed-end period are uncontrollable.

Generally speaking, semi-closed fund is an innovative fund based on closed-end fund. Moreover, semi-closed funds can play a low-risk role on the basis of improving capital liquidity. Semi-closed fund can be used as an alternative product of bank wealth management products, and it can also be one of the investment wealth management products that investors seeking stability must choose.