Should the fund be closed for three years?
In the long run, the main purpose of the three-year fund closure period is to let investors enjoy more benefits. For investors, the three-year fund closure period can make their emotions less affected by market fluctuations, and they don't have to stare at the changes in the net value of the fund every day. To a certain extent, they can effectively avoid short-term trading and blindly chasing up and down. For fund companies, the three-year closure period greatly reduces the occurrence of fund redemption and can realize more scientific and reasonable long-term investment.
However, the closed period of the fund also has some shortcomings. Because the closure period is as long as three years, the liquidity of funds is greatly limited. For investors, once there is a situation that they urgently need, it will be greatly affected. Moreover, the risk of closed-end fund itself is relatively large, and its profit cannot be predicted after three years of closed-end period.
Generally speaking, investment funds must be closed for three years according to their actual situation. Once you choose to invest blindly, it will easily lead to personal funds being quilted. In addition, when investing in funds, it is forbidden to enter the market when the fund is at a historical high. In this case, the possibility of the fund rising again is not high, and the available income is relatively small.