Investors are not allowed to apply for redemption during the closed period, and fund managers can do their best to invest during this period, regardless of the redemption pressure. After the closure period, there will be an open period ranging from two or three days to one month for investors to collectively purchase and redeem. This mechanism makes it easier to obtain high expected returns by regularly opening the debt base than by ordinary debt base.
Extended data:
The longer the duration, the more sensitive the net asset value of bond funds is to the change of interest. If the duration of the bond fund is five years, if the interest rate drops by 1 percentage point, the net asset value of the fund will increase by about 5 percentage points.
Conversely, if the interest rate rises by 1 percentage point, the net asset value of the fund will lose 5 percentage points. For another example, there are two bond funds with a duration of 4 years and 2 years respectively, and the net asset value of the former fluctuates about twice as much as that of the latter.
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