Open-end fund refers to a fund operation mode in which fund sponsors can sell fund shares or shares to investors at any time according to their needs, and can redeem the fund shares or shares issued at the request of investors when setting up the fund. Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly.

The difference between open-end fund and closed-end fund

(1) The term and scale of the Fund are not fixed.

Closed-end funds have a fixed duration, during which the fund size is fixed; Open-end funds have no fixed duration, and their scale can change at any time due to investors' subscription and redemption.

(2) Unlisted.

Closed-end funds are listed and traded on the stock exchange, and open-end funds are purchased and redeemed in the business premises of sales organizations, and are not listed and traded;

(3) The price is determined by the net value.

The transaction price of closed-end funds is mainly affected by the relationship between supply and demand in the market, which is often lower than the net asset value of funds; The purchase and redemption price of open-end funds is calculated by adding or subtracting a certain handling fee from the net asset value of the fund unit published daily, so it can reflect its investment value at a glance.

(4) High management requirements.

Open-end funds are faced with redemption pressure at any time, so they should pay more attention to risk management such as liquidity and require fund managers to have a high level of investment management.