Funds cannot be purchased and redeemed at will, and can only be bought and sold in the secondary market. The disadvantage is that the market price is usually discounted relative to the net value, so if you sell it, you will have lost money. The advantage is that fund managers are more free, do not need to deal with purchase and redemption, and are easy to achieve results; Kaiji can apply for redemption at any time. The advantage is that you can take as much as you want when you redeem it, and there is no discount when you sell it. The disadvantage is that a large number of subscriptions will dilute the income of the original holders (this is the reason why large-scale selection is not open for subscription for n years), and it is necessary to allocate a large number of low-yield demand deposits and short-term bonds to meet redemption, and the operation is not free. Both of them have their own advantages and disadvantages. LOF is a compromise between them, which basically overcomes the shortcomings of open base and closed base.