The duration of "5+2" fund means that the investment period of the fund is five years, and the withdrawal period is after five years.

In other words, the fund investment is not allowed to withdraw within five years, and can choose to withdraw after five years, and at the same time can choose to postpone the withdrawal for two years, that is, withdraw after seven years.

: Definition of duration of fund

The duration of the fund refers to the fund's successful raising and entering the daily trading period of the fund after the fund contract is established for a period of time, which is called the duration of the fund.

Closed-end funds usually have a fixed duration. At present, the duration of closed-end funds in the market is 10 year or 15 year. The state stipulates at least five years. Upon maturity, the duration can be extended with the approval of the fund holders' meeting and the consent of the regulatory authorities. However, open-end funds have no fixed duration. If the fund operation is approved by the fund holders, it can continue to operate.

The so-called "5+2" fund with duration means that the investment period (closed period) of the fund is 5 years, and the withdrawal period is 2 years, that is, the fund will invest for 5 years, and the limited partner may not withdraw within 5 years. After five years, the limited partner can choose to quit, or he can choose to postpone his exit for two years, that is, quit after seven years. "7+2" fund and "10+2" fund are the same.

There are two main factors that determine the duration of the fund.

1. The length of the investment period of the fund itself

Generally speaking, if the purpose of the fund is to make medium-and long-term investments (such as venture capital funds), its duration can be longer, while if the purpose of the fund is to make short-term investments (such as money market funds), its duration can be shorter.

2. Macroeconomic situation

The general economy grows steadily, and the duration of the fund can be longer. If the economy fluctuates, it should be relatively short.

Of course, in reality, the duration should also consider the requirements of fund sponsors and many investors. The expiration of the fund term is the termination of the fund.

The fund raising period is from the announcement of the fund prospectus to the establishment of the fund, which can actually be said to be the issuance period of the fund.

During this period, the fund company will sell the fund through direct sales, consignment agencies or banks. During the fund raising period, investors can only buy funds, which is also called fund subscription. The price for investors to subscribe for the fund is calculated according to the net fund share (i.e. 1 yuan).

There will be certain restrictions on the number of subscription shares of the fund. If the number of shares is reached in advance, the fund raising period can be ended in advance, and the fund cannot be confirmed if it exceeds the quota. If the scale of raising does not reach the scale stated in the pre-announcement, the fund cannot be established.

The fund-raising period is generally 1 to 3 months.

At the end of the fund raising period, it will enter the closed period of the fund. During the closed period of the Fund, investors cannot purchase and redeem the Fund. In the later period of fund closure, the fund subscription is generally opened first, and the investment cannot be realized immediately. The fund closure period is generally not more than three months.

After the fund closure period, investors can buy and sell funds normally, that is, the duration of the fund. At this time, the fund subscription is called the fund subscription, and the fund price is different from the fund subscription, which is calculated according to the closing price of the day.

The duration of closed-end funds is at least 5 years, generally 10- 15 years. Closed-end funds can be extended after expiration. As long as the fund holders recognize the operation of the fund, the duration of the open-end fund can last for a long time.

Encyclopedia of Investor Remittance Fund