1. After the closed-end fund expires, the duration of the fund will be extended again. In this case, if the investor's closed-end fund is not redeemed at maturity, the fund will automatically extend the investment period of the fund contract signed with the investor, continue to close the life of the fund, and the fund share in the hands of the investor will remain unchanged, and then follow the subsequent ups and downs of the fund to gain income or bear losses. In the new closed period, investors can not redeem the fund, but can only redeem it in the next open period of the fund.
2. Closed-end funds shall be liquidated after expiration. After the closed-end fund expires, it shall be liquidated directly according to the provisions of the fund contract, ending the life of the closed-end fund and paying it to the fund share holders according to the net value of the liquidated fund.
3. Closed-end funds become open-end funds after expiration. Turning a closed-end fund into an open-end fund is often called "turning from closed to open". After the closure, the net value of the fund returns to one yuan to start re-subscription, and the fund splits or compensates the original share of investors. Since then, the operation of the fund is similar to that of an open-end fund, and investors can decide whether to redeem the fund according to their investment needs.
The fund is closed and opened in the following ways:
1, direct transformation. That is, closed-end funds are directly converted into open-end funds after voting at the conference. This procedure is simple, but it requires a lot of stability and yield of the fund, because once the fund is opened, it may face a lot of centralized redemption risks.
2. Gradually transform. Closed-end funds are opened every once in a while, and fund share holders can choose to redeem or purchase funds on the open day according to investment needs. When the scale of closed-end funds drops to a certain scale, closed-end funds will automatically turn into open-end funds. This can effectively reduce the redemption risk of the fund, but it also has the disadvantage of long transition period.
3. Merger and transformation. The merger transformation can be the merger of several closed-end funds into a new open-end fund, or the merger of a closed-end fund and an open-end fund. Closed-end funds can be transformed into open-end funds through merger, which can improve their ability to resist redemption.
4. Become an exchange traded fund (ETF) or a listed open-end fund (LOF).