Closed-end funds generally have a term, and they cannot be withdrawn without maturity, so their liquidity is relatively poor. It is not recommended to buy a closed-end fund if it is needed in the short term, because if something needs to be withdrawn in advance, it cannot be withdrawn.
Generally, there will be no redemption page, that is, if there is no redemption page on the page of purchasing funds, it cannot be redeemed. So the liquidity of closed-end funds is not good, and the funds needed in the short term are not suitable for purchase.
Secondly, closed-end funds can't be taken out during the closed period, so if there are major problems in the fund or the fund market is not good, assuming that the fund is a closed-end fund with a fixed term of one year, it means that it needs to be held for one year before it can be taken out.
Then, if the fund always falls more and rises less in this year, and investors can't come up with it, they can only watch the losses day by day, then the process will be more painful. Therefore, to buy a closed-end fund, you need to make a good capital plan in advance, or prepare a reserve fund for a rainy day.
However, it should be noted that if you choose a good closed-end fund, you can also make money, and you don't need to worry about it yourself. However, if you choose a bad closed-end fund, you will lose money behind closed doors. Therefore, you must be cautious when buying closed-end funds, and don't buy them at will.
We should analyze closed-end funds from many aspects and choose a good one, such as a good fund manager. Because funds are managed by fund managers, it is very important to choose a good fund manager. When choosing, you can give priority to fund managers with long working years, so that they have more experience, and then you need to refer to the rate of return on employment, how to manage past income and so on. Then look at the fund's past income, fund size, morning star level, investment direction, etc., all of which should be taken into account.