The closed period of the fund means that the fund has successfully raised enough funds. After the fund contract comes into effect, investors' applications for fund share redemption will not be accepted for some time. According to the regulations, the fund can not be closed for more than 3 months.

Fund closure period

Closed-end period is usually aimed at open-end funds, which mainly refers to one of the four periods that funds must go through from raising to investing. Generally speaking, after the capital verification expires, the foundation enters the fund closure period. During the closed period, the Fund neither accepts the subscription of fund shares nor accepts the redemption of fund shares.

Why is there a closure period? Closed period is a period that open-end funds must go through, because closed period can provide funds with a relatively stable process of opening positions.

On the one hand, it is to facilitate the fund background to make full preparations for daily subscription and redemption.

On the other hand, fund companies can use the closed period to initially use the raised funds to buy and sell stocks, open positions and invest in bonds. At the same time, investors can't redeem the fund during the closed period. Therefore, fund companies no longer need to prepare a separate fund as a redemption reserve. He can invest all his money in the target he wants to invest in.

The closure period of different funds will be different, ranging from ten days to half a year. But it usually doesn't last more than three months. It is understood that the closure period of newly issued funds is getting shorter and shorter, and the subscription or redemption can be opened in ten days at the earliest.

Advantages of fund closed period:

1, the closed period is conducive to fund managers to focus on investment, and will not affect the fund scale and operation because investors frequently apply for redemption. Moreover, a closed period of 2-3 years is easier to cover a complete market cycle, and fund managers can use long-term investment opportunities to improve their performance.

2. It can help investors avoid the impulsive behavior of chasing up and down due to market fluctuations and emotional influences. And if investors hold the fund for a long time, the return on income is relatively objective, and investors can pursue long-term steady appreciation.