There is no absolute saying whether it is better to buy closed-end funds or open-end funds. It needs to be comprehensively analyzed according to investors' own needs and fund products. If investors have certain requirements for liquidity, they can choose open-end funds, and if investors have no requirements for liquidity, they can choose closed-end funds.
Open-end fund:
It means that the total size of fund units or shares is not fixed when fund sponsors set up funds. According to the needs of investors, the fund can be sold to investors at any time or redeemed at the request of investors, which is relatively flexible.
Investors can purchase through banks, brokers, WeChat, Alipay and Tian Tian Fund.
Off-site subscription of open-end funds: subscription fee or subscription fee, redemption fee and operation fee. Operating expenses are to maintain the operation of the fund. The expenses deducted from the fund are not directly paid by the investors. Usually, operating expenses include management fees, custody fees and sales service fees.
On-site purchase of open-end funds: Like stocks, stamp duty and transfer fees are not required, but a commission of up to 0.3% will be charged.
Closed-end fund:
It refers to a securities investment fund that has determined the total amount of issuance and the issuance period at the time of its establishment, and fixed the total amount of issuance within the prescribed period after the completion of issuance. You can't trade during the closed period, and you can only apply for redemption when the fund is open regularly or listed. The liquidity is poor, but the rate of return is generally higher than that of open-end funds.
Although you can't apply for redemption during the closed period, you can sell some funds in the secondary market to achieve the purpose of redemption. For example, reits funds are closed for 20-99 years, and investors who have already purchased them can transfer custody to the market for trading.