Both closed-end funds and open-end funds have closed-end periods. Only for closed-end funds, open regularly, so the closed time is longer; The closed period of open-end funds is generally the fund raising period. So why not buy a closed-end fund? Let's get to know each other.

Why not buy a closed-end fund?

The reason why closed-end funds don't recommend buyers is because investors can't redeem the funds during the closed period, which will cause greater risks to investors. One of the reasons is that the closed period of the fund is not fixed, usually between several months and several years. During this period, it is impossible to operate the fund, which means that investors can't sell or buy at the high position of the fund in time, which leads investors to miss the investment opportunities of the fund. The second reason is that closed-end funds cannot be redeemed at any time. If investors are in urgent need of funds, it is impossible to solve the problem by redeeming funds, and the liquidity of funds will be affected.

Generally speaking, closed-end funds will increase the risk of investors. In addition, if the fund is closed for a long time, the fund management team needs more time to cope with the changes in the market, thus affecting the performance of the fund. The closure period may also lead to the increase of fund cost and investor investment cost.

Of course, if investors want to buy closed-end funds, they can carefully evaluate the time, performance and cost of closed-end funds before making corresponding investment decisions.