Closed-end fund is the earliest fund model. At the time of its establishment, it has limited the total issuance of fund units. After the establishment, before the expiration of the contract, the scale of the fund remains fixed, no new investment is accepted, and investors are not allowed to redeem the fund in advance.

Because there is no redemption pressure, closed-end funds are easy to manage and can invest for a long time. But in this way, the risk is uncontrollable, and even if the operation fails, investors can't redeem it in advance. However, if the contract term is more than 5 years, the raised funds are not less than 200 million RMB, and the number of investors is not less than 65,438+0,000, then the closed-end fund can be listed and investors can trade on the stock exchange. Compared with open-end funds, closed-end funds have the characteristics that the transaction price will be inconsistent with the net value of fund shares (net assets/total shares). Net value is the intrinsic value of the fund itself, which mainly reflects the real performance of the fund. The transaction price is also affected by the relationship between market supply and demand. When the demand exceeds the supply, the transaction price may rise above the net value, which is called premium. When the supply exceeds the demand, the transaction price may fall below the net value, which is a discount. Therefore, investment in closed-end funds can be held for a long time, pursuing the return brought by its net value growth. You can also take advantage of the fluctuation of transaction prices in the market, buy at a discount, sell directly when the premium is high, or redeem at the net value after the closed period, all of which can benefit from it.