1. In order to ensure the liquidity of funds, private equity funds usually adopt an open and closed operation mode with a fixed term. A one-month redemption period can give the fund company enough time to process the redemption application of investors, and have enough time to adjust and match assets to ensure the liquidity of the fund.
2. In order to avoid intraday trading: if the redemption period is too short, it will lead to frequent redemption by investors, which will violate the long-term value investment concept of the fund and may also bring unnecessary pressure to the management and operation of the fund. Therefore, setting a longer redemption period can make investors invest more rationally and steadily.
3. In order to protect the interests of investors: Private equity funds are usually aimed at high-net-worth investors, who do not have such high requirements for asset liquidity. By setting the redemption period, it helps to prevent investors from redeeming a large number of assets in a short time when the market fluctuates greatly and avoid losses.