Closed-end fund is an investment tool, which is characterized by the fact that fund shares cannot be redeemed at will. Usually, the common Public Offering of Fund has the problem of centralized redemption of funds, which will bring great pressure to fund managers. On the contrary, the shares of closed-end funds cannot be redeemed within a fixed period of time, and investors can only transfer the fund shares to others according to the agreed time. In this way, fund managers can manage funds more stably and avoid sudden redemption pressure.

Closed-end funds have a certain investment threshold, which means that only investors with certain financial strength can participate. This kind of fund can usually invest in some non-performing assets, such as the shares of smaller companies with poor liquidity. By holding these assets for a long time, closed-end fund managers can get higher returns. The yield of closed-end funds is usually higher than that of open-end funds, which is one of the reasons to attract investors to participate.

The return and risk of closed-end funds are usually high, which requires investors to be more cautious when choosing funds. The portfolio it operates is usually simple, and if the portfolio risk control is not in place, it may lead to greater losses. When investors decide to participate in closed-end funds, they need to deeply understand the investment strategy, management ability and investment style of fund managers and rationally evaluate their potential risks and benefits. Only by knowing enough about closed-end funds can we make wise investment decisions.