1. According to whether the fund can be redeemed, securities investment funds can be divided into open-end funds and closed-end funds.

Open-end funds refer to investment funds whose size is not fixed because investors can subscribe or redeem them from the fund manager or its sales agency at any time.

Closed-end funds, relative to open-end funds, refer to investment funds whose fund size remains fixed after issuance and within a specified period.

2. The main differences between open-end funds and closed-end funds are as follows: (1) The variability of fund size is different.

Closed-end funds have a clear duration (the duration of existing closed-end funds in my country is generally 15 years), and the issued fund shares cannot be redeemed during this period.

Although such funds can be expanded under special circumstances, the expansion should meet strict legal conditions.

Therefore, under normal circumstances, the fund size is fixed.

The fund shares issued by open-end funds are redeemable, and investors can also subscribe for fund shares at will during the duration of the fund, resulting in the total funds of the fund constantly changing every day.

In other words, it is always open.

This is the fundamental difference between closed-end funds and open-end funds.

(2) Fund shares are bought and sold in different ways.

When a closed-end fund is initiated and established, investors can subscribe to the fund manager or sales agency; when the closed-end fund is listed for trading, investors can buy and sell at the market price on the stock exchange.

When investors invest in open-end funds, they can subscribe or redeem from the fund manager or sales agency at any time.

(3) The buying and selling prices of fund shares are formed in different ways.

Because closed-end funds are listed on exchanges, their buying and selling prices are greatly affected by market supply and demand: when market supply exceeds demand, the buying and selling price of fund shares may be higher than the net asset value of each fund share, and then the fund assets owned by investors will be

will increase; when market supply exceeds demand, the fund price may be lower than the net asset value of each fund share.

The buying and selling price of open-end funds is calculated based on the net asset value of unit funds, which can directly reflect the level of the net asset value of fund shares.

In terms of fund trading fees, when investors buy and sell closed-end funds, just like buying and selling listed stocks, they also have to pay a certain proportion of securities transaction taxes and handling fees in addition to the price; while investors in open-end funds need to pay related fees

(such as initial subscription fee, redemption fee) are included in the fund price.

(4) The investment strategies of funds are different.

Since closed-end funds cannot be redeemed at any time, all funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term operating performance.

Open-end funds must retain a portion of cash so that investors can redeem them at any time, and they cannot all be used for long-term investment. They generally invest in assets with strong liquidity.