Although fund investment is simpler than stock investment, there is a lot of knowledge to understand. If we don't know in advance, we may find that we can't redeem the fund after buying it, but it is shown as locked. So what does the fund lock-up period mean? What's the difference between closed period and closed period?

What does the lock-up period mean?

1 fund lock-up period: lock-up refers to your newly subscribed fund shares, which are locked from the subscription opening day and can be unlocked after the expiration, and then you can choose to redeem them on the following opening day. Generally, the lock-up period of shares ranges from 6 months, 1 year, 2 years and 3 years, and some funds have no lock-up period directly, which makes them more flexible.

2 fund closure period: this generally refers to the need to open a position after the establishment of a new fund, so a closure period is set for the fund. During the closing period, the fund is closed and cannot be redeemed. The closure period generally ranges from 3 months, half a year, 1 year, but some funds do not directly set the closure period.

What's the difference between lock-up period and closed period?

The closed period is usually only used for newly established funds, while the locked period is for investors to buy fund shares, which is suitable for new and old funds. Because newly established foundations generally pay more attention to the closed period, old funds generally pass the closed period, so most fund shares cannot be redeemed when locked in the locked period.