1. The nature of closed-end fund: a securities investment fund that has determined the total issuance amount and the issuance period at the time of its establishment, and fixed the total issuance amount within the specified period after the issuance.

2. The nature of open-end funds: when fund sponsors set up funds, the total scale of fund units or shares is not fixed. Fund shares or shares can be sold to investors at any time according to their requirements, and fund shares or shares issued overseas can be redeemed according to their requirements.

Second, the characteristics are different.

1. Features of closed-end funds: the holder cannot ask the fund company to pay back the money in advance. Therefore, fund companies have great independent control over funds and can even play the trick of "interest transfer". Of course, there are also formal fund companies and fund managers. The yield of managed closed-end funds is not necessarily worse than that of open-end funds.

2, the characteristics of open-end funds:

(1) Capital scale

The variability of fund size is different. Closed-end funds have a definite duration (in China: not less than 5 years), and the fund shares issued during this period cannot be redeemed. Although such funds can be raised under special circumstances, there must be strict legal conditions.

(2) Mode of purchase and sale

Fund shares are bought and sold in different ways. When a closed-end fund is initiated, investors can subscribe to the fund management company or sales organization; When closed-end funds are listed and traded, investors may entrust securities companies to trade at the market price on the stock exchange. Investors investing in open-end funds can apply for subscription or redemption to fund management companies or sales organizations at any time.

(3) the buying and selling price

The buying and selling prices of fund shares are formed in different ways. Because the closed-end fund is listed on the exchange, its transaction price is greatly influenced by the relationship between market supply and demand. When the market supply is less than the demand, the selling price of fund shares may be higher than the net asset value of each fund share, so the fund assets owned by investors will increase; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund share.

Extended data:

Open-end fund has become the mainstream of international fund market. In the United States, Britain, Hongkong and Taiwan Province Province, more than 90% of the fund markets are open-end funds. Compared with closed-end funds, open-end funds have greater advantages in incentive and restraint mechanism, liquidity, transparency and investment convenience.

Closed-end funds belong to trust funds, which refer to investment funds whose scale is determined before issuance and traded in the securities market within a certain period after issuance.

Because closed-end funds are traded at competitive prices, the transaction price is affected by the relationship between market supply and demand, which does not necessarily reflect the fund's net asset value, that is, the transaction price of closed-end funds has a premium phenomenon and a discount phenomenon compared with its net asset value.

Baidu encyclopedia-closed-end fund

Baidu Encyclopedia-Open Fund