1. Variability of fund size The fund shares issued by different open-end funds are redeemable, and investors can buy fund shares at any time, so the fund size is not fixed; The scale of closed-end funds is fixed. 2. The transaction prices of fund units are different. The transaction price of the fund share of the open-end fund is based on the net asset value corresponding to the fund share, and there will be no discount. The price of closed-end fund shares will be more affected by the relationship between market supply and demand, and the price fluctuates greatly. 3. The trading channels of fund units are different. Investors of open-end funds can buy or redeem funds directly from fund management companies at any time, with low fees and no income tax. The trading of closed-end funds is similar to stock trading, which can be traded in the securities market and requires the payment of handling fees and securities transaction tax. Generally speaking, the cost is higher than that of open-end funds. 4. Open-end funds with different investment strategies must reserve some funds to cope with investors' redemption at any time, and the requirements for management should be higher. However, closed-end funds cannot be redeemed, so they can make full use of funds and make long-term investments, and there is no requirement for liquidity management of funds. 5. The required market conditions are different. Open-end funds are more flexible, and the fund scale is easier to scale up and down, which is suitable for funds with a higher degree of openness. A larger financial market; On the contrary, closed-end funds are suitable for financial markets with imperfect financial system, low openness and small scale. In the first stage of the development of China's securities investment funds, closed-end funds developed vigorously, and open-end funds did not appear in China until 200 1. 1, strong market selectivity If the fund has excellent performance, the capital flow of investors buying the fund will lead to the increase of fund assets. However, if the fund is poorly managed, investors will withdraw funds by redeeming the fund, resulting in a decrease in fund assets. This mechanism of survival of the fittest has formed a direct incentive and constraint for fund managers, which fully embodies a good market choice. 2. Strong liquidity From the perspective of investors, funds can be purchased or redeemed at any time according to the net value of funds, and their investments can be realized at any time with strong liquidity; From the manager's point of view, it is necessary to maintain sufficient liquidity of fund assets to cope with possible redemption and avoid holding a large number of assets that are difficult to realize, so the liquidity of fund assets is stronger than that of closed-end funds. 3. High transparency returns to the top. Open-end funds operate transparently, and fund assets are managed by banks. In addition to the necessary information disclosure, the net asset value is generally published daily, which accurately reflects the operation of fund managers in the market at any time. 4. It is convenient for investment to return to the top. Investors can purchase and redeem funds at all sales places at any time, and the transaction is very convenient.