Closed-end funds have guaranteed income. Closed-end funds can not operate during the closed period, which greatly reduces the losses caused by investors' operational mistakes. Most closed-end funds can get relatively good returns, or surpass the wealth management products in the same period. Most closed-end funds have a duration when they are issued, in order to avoid frequent redemption by customers and affect the operating costs and performance of the funds.

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Fund closure period

The so-called closed period of open-end fund refers to a period of time when investors do not accept the application for fund share redemption after the fund successfully raises enough funds to declare the fund contract effective. On the one hand, the closure period is set to facilitate the fund backstage (registration center) to make the best preparation for future subscription and redemption; On the other hand, the fund manager can complete the preliminary investment arrangement according to the situation of the securities market. According to the Measures for the Administration of the Operation of Securities Investment Funds, the closed period of the funds shall not exceed 3 months.