Both closed-end funds and open-end funds have closed-end periods. Only for closed-end funds, open regularly, so the closed time is longer; The closed period of open-end funds is generally the fund raising period. So what are the funds that are not recommended to buy closed-end funds? Let's see if it is not recommended to buy closed-end funds.

Why not buy a closed-end fund?

The reason why closed-end funds don't recommend buyers is because investors can't redeem the funds during the closed period, which will cause greater risks to investors. One of the reasons is that the closed period of the fund is not fixed, usually between several months and several years. During this period, it is impossible to operate the fund, which means that investors can't sell or buy at the high position of the fund in time, which leads investors to miss the investment opportunities of the fund. The second reason is that closed-end funds cannot be redeemed at any time. If investors are in urgent need of funds, it is impossible to solve the problem by redeeming funds, and the liquidity of funds will be affected.

Generally speaking, closed-end funds will increase the risk of investors. In addition, if the fund is closed for a long time, the fund management team needs more time to cope with the changes in the market, thus affecting the performance of the fund. The closure period may also lead to the increase of fund cost and investor investment cost.

How long can the fund be established before it can see the benefits?

You can see the income of the fund about a week after its establishment. During the closure period, the Fund will publish its net value once a week until the closure period ends. Users of closed-end funds can see the changes of fund income every day after the closed-end period. For money funds, they are generally profitable after entering the closed period, but not all closed funds can get very good returns.

In the fund market, if you can purchase old funds, it is best not to purchase new funds. Whether the fund is profitable during the closed period depends on the fluctuation of the underlying assets, if the overall growth is profitable. If the bond, stock and hybrid funds do not grow as a whole, the funds will have no income.

Is there any income from the closed period of the fund?

You can see the income when the fund is closed. During the closed period, the Fund will announce the net value of fund shares at least once a week, usually on Friday, and the income of the Fund will not be known until the net value of the Fund is announced. According to the Measures for the Administration of the Operation of Securities Investment Funds, the closed period of the funds shall not exceed 3 months.

Closed period is a period that open-end funds must go through, which can provide a relatively stable opening process for funds. The closure period of each fund varies with the type of fund. The so-called fund closure period refers to the time when the fund manager cannot accept the subscription, redemption and other businesses within the time limit stipulated in the fund contract and prospectus at the initial stage of the establishment of an open-end fund.

On the one hand, the closure period is set to facilitate the fund backstage registration center and make the best preparation for the purchase and redemption afterwards; On the other hand, the fund manager can complete the preliminary investment arrangement according to the situation of the securities market. Because the investment income is related to the scale of funds, and the stability of the scale of funds is an important prerequisite for fund managers to control their positions.

The process from raising funds to investing in open-end funds needs to go through four periods, namely, raising period, capital verification period, closing period and normal subscription and redemption period. During these four periods, investors bought and sold fund shares in different ways.

Many people say how about buying closed-end funds?

Individuals do not recommend buying closed-end funds for the following reasons:

1. If the year of buying closed-end funds happens to be a bull market, you may miss a large part of the income.

As we all know, the A-share market has always been short and long, and it can have a bear market of up to 5.6 years. But the bull market usually ends in half a year or a year, and the bear market is generally the decline of waterfall market. If redemption is not opened before the arrival of the bear market, basically this year will be wasted.

2. If it is a bear market, it is not recommended to buy closed-end funds. Can only look at the loss, there is no way. Specifically, you can just look at an ant strategic placement fund. The comment area is full of complaints every day.

3. In the volatile market, closed-end funds will not perform better than other funds.

In the turbulent market, some sectors will rise against the trend. As long as these sectors can be selected, the funds will still have good returns. For example, although the index has not performed well this year, the income of new energy, coal and other funds is still very eye-catching, but if you buy closed-end funds, you can only resign yourself to fate.

However, closed-end funds are not without merit. Its advantage is that fund managers have a lot of room to play, and they don't have to consider the trading of holders every day, so they can spare more time to study the market.

What is not recommended to buy closed-end funds?

Closed-end funds generally have a term, and they cannot be withdrawn without maturity, so their liquidity is relatively poor. It is not recommended to buy a closed-end fund if it is needed in the short term, because if something needs to be withdrawn in advance, it cannot be withdrawn.

Generally, there will be no redemption page, that is, if there is no redemption page on the page of purchasing funds, it cannot be redeemed. So the liquidity of closed-end funds is not good, and the funds needed in the short term are not suitable for purchase.

Secondly, closed-end funds can't be taken out during the closed period, so if the fund has major problems or the fund market is not good, assuming that the fund belongs to a closed-end fund with a fixed term of one year, it means that it needs to be held for one year before it can be taken out.

Then, if the fund always falls more and rises less in this year, and investors can't come up with it, they can only watch the losses day by day, then the process will be more painful. Therefore, to buy a closed-end fund, you need to make a good capital plan in advance, or prepare a reserve fund for a rainy day.