How to judge whether the fund is closed or open?
The following are the ways to judge whether a fund is a closed-end fund or an open-end fund:
1, transaction method
Closed-end funds need to entrust securities companies to buy and sell fund shares through stock exchanges, and cannot redeem fund shares. Closed-end funds are transactions between investors, which can only be completed within the specified trading time.
Open-end funds can purchase and redeem fund shares through fund management companies or consignment platforms, and transactions are completed through investors and fund managers, and the trading time is not limited.
2. Is there any change in the size of the fund?
The scale of closed-end funds is usually constant, and the redemption of fund shares is not supported during the duration, so they can only be traded through the secondary market.
Open-end funds can be purchased and redeemed at any time, so the fund scale is constantly changing and sales are limited.
3. Factors that determine the transaction price
The transaction price of closed-end funds is influenced by market supply and demand. When the supply exceeds the demand, the fund price may be higher than the net value of the fund unit, and vice versa.
The price of open-end funds is mainly determined by the net value of fund shares.
4. The announcement time of the net fund value.
The net value of closed-end funds is published once a week. The net value of open-end funds is announced every day, so the announcement of the net value of closed-end funds is delayed to some extent, and it is not as full as that of open-end funds.
Closed-end fund means that the share and investment period of fund issuance have been determined at the time of fund issuance. After the fund raising is completed, investors can no longer buy it, and investors can't redeem it during the investment period.
Open-end fund is also called * * * mutual fund, which means that when the fund is established, the share of raised funds is not fixed and the investment period is not fixed, and investors can buy or redeem it at any time according to their investment needs.