1. The duration is different.
Open-end funds have no fixed term, and investors can redeem fund shares from fund managers at any time; Closed-end funds usually have a fixed closed-end period, usually 10 years or 15 years.
2. Variability at different scales
Open-end funds usually have no restrictions on the issuance scale, and investors can apply for subscription or redemption at any time, so the fund scale has increased or decreased; Closed-end funds specify their fund size in the prospectus, and the total amount of duration after issuance is fixed.
3. Different redeemability
Open-end funds are legally redeemable. Investors can apply for redemption at any time after the end of the initial public offering for a period of no more than 3 months. However, closed-end funds cannot be redeemed during the closed period, and listed funds can be transferred through the stock exchange, and their shares remain unchanged.
4. The calculation standard of transaction price is different.
The transaction price of closed-end funds is influenced by the relationship between market supply and demand, and there are often premium or discount transactions, usually discount transactions; The subscription price of open-end funds is generally the net asset value of the fund unit plus a certain subscription fee, and the redemption price is the net asset value of the fund minus a certain redemption fee, which has little to do with market supply and demand.
Article 13 of the Interim Measures for the Administration of Securities Investment Funds
The raising period of closed-end funds is 3 months, counting from the date when the funds are approved. A closed-end fund can only be established if the funds raised within 3 months from the date of approval exceed 80% of the approved scale of the fund. An open-end fund can only be established if its net sales exceed 200 million yuan within 3 months from the date of approval.
When raising closed-end funds, if the raised funds are less than 80% of the approved fund size, no fund may be established. If the net sales of an open-end fund is less than 200 million yuan within 3 months from the date of approval, the fund shall not be established. The fund sponsors must bear the fund raising expenses, and the raised funds plus the interest on bank demand deposits must be returned to the fund subscribers within 30 days.