The income from fund investment comes from the future. For example, if you want to redeem stock funds, you can first look at whether the future development of the stock market is a bull market or a bear market. Then decide whether to redeem or not, and make a choice on the timing. If it is a bull market, it can be held for a period of time to maximize the benefits. If it is a bear market, redeem it in advance and put it in the bag.
Converting high-risk fund products into low-risk fund products is also a kind of redemption, such as converting stock funds into money funds. Doing so can reduce the cost, the conversion fee is generally lower than the redemption fee, while the money fund has low risk and is equivalent to cash.
Extended data:
After the establishment of a closed-end fund, the fund shares held by investors can be listed and traded on the stock exchange, but the scale of the fund will not change, so it is called a "closed-end" fund.
In other words, the "share transaction" of open-end funds is a transaction between investors and the fund company that initiated the fund products, while the "share transaction" of closed-end funds is a transaction between investors.
The pricing of closed-end funds is based on the relationship between supply and demand of investors in the secondary market of stock exchanges. The net value of closed-end fund is calculated according to the investment situation of the fund, according to the total assets of the fund divided by the total share of the fund, that is, the actual amount of fund assets represented by each fund.