The establishment of a new fund will go through three stages: fund raising period, fund closing period and fund opening period. The fund raising period is the period when citizens subscribe for new funds. During the fund raising period, the scale of the new fund must meet the requirements before it can enter the next stage, otherwise the issuance will fail, and after the fund raising period, it will enter a closed period. During the closed period, the citizens are not free to purchase and redeem, and after the closed period, it is an open period, which can be as normal as the old fund.

In addition, a closed-end fund has been formally established. Such funds have a certain holding period or are open on a regular basis. No subscription or redemption can be made during the closed period. These two types of closure represent different meanings.

According to the Pilot Measures for Open-ended Securities Investment Funds, the closed period of new funds shall not exceed three months. In practice, most foundations end their closure period after one or two months.

The closing period of the new fund is mainly to complete the initial opening of the new fund. After the successful fund raising, the fund manager needs to gradually complete the initial position layout according to the nature of the fund and the actual market situation. Simply put, fund managers should allocate the raised funds to various assets such as stocks and bonds.

The opening of the fund is not achieved in one step. The longest opening period of the new fund is 6 months, that is, the opening period will be longer than the closing period. Complete the initial opening of the new fund within the closed period, then the fund will enter the normal opening period, and then continue to complete the opening operation. This stage from the end of the closed period to the completion of the opening of the position is generally called the sub-new fund.

During the closed period, fund managers will gradually buy stocks, bonds and other assets. As long as they start to hold these assets, there will be floating gains and losses, and the fund will also generate gains or losses, and the net value of the fund will also change. Therefore, during the closed period, the foundation generated profits, but because of the relatively low position, the profit and loss range was smaller than that of the old fund.

Funds in a closed period generally publish their net value once a week, usually every Friday.

After the new fund ends the closed period and enters the official opening period, there will generally be no sudden surge, which is also limited by the position.

At the same time, the closed-end period also plays a very important role in maintaining the stability of the new fund scale, which allows fund managers to focus more on fund asset allocation.