Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market demand.

Briefly talk about the difference between opening and closing.

The main differences between closed-end funds and open-end funds are as follows:

(1) terms are different. Closed-end funds have a fixed closed period and should be liquidated after the end. Usually more than 5 years, usually more than 10 years or 15 years. With the approval of the beneficiaries' meeting and the consent of the competent authorities, the time limit may be appropriately extended. However, open-end funds do not have a predetermined life, and investors can redeem their fund shares from fund managers at any time, which may even lead to liquidation if they are redeemed in large quantities.

(2) There are different restrictions on the issuance scale. The fund scale of closed-end funds is fixed, and it is not allowed to increase the issuance without legal approval during the closed-end period. There is no limit to the size of open-end funds. Investors can apply for subscription or redemption at any time, and the fund size will increase or decrease accordingly.

(3) Fund units have different trading methods. The fund shares of closed-end funds cannot be redeemed during the closed period and are listed on the stock exchange or transferred over the counter. Most transactions are done between investors. Investors of open-end funds can apply to fund managers or intermediaries for subscription or redemption at any time within a period of time (mostly 3 months) after the end of the initial offering. Most open-end funds are usually not listed and traded.

(4) The calculation criteria of the transaction price of fund shares are different. Closed-end funds and open-end funds have different transaction pricing methods except that the initial issue price is calculated at face value plus a certain percentage of subscription fee. The buying and selling price of closed-end funds is affected by the relationship between market supply and demand, and there is often a phenomenon of premium or discount, which does not necessarily reflect the net asset value of funds. The transaction price of open-end funds depends on the net asset value of the fund unit. The transaction price of open-end funds depends on the net asset value of the fund unit. The subscription price 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 unit minus a certain redemption fee, which is not directly affected by market supply and demand.

(5) Different investment strategies. Closed-end funds will not reduce the size of the fund during the closed period, so they can make long-term investments, and the combination of fund assets can be effectively carried out within the predetermined plan. Open-end funds can be redeemed at any time. In order to cope with investors' redemption at any time, all fund assets cannot be used for investment, let alone for long-term investment. To maintain the liquidity of fund assets, keep some cash and highly liquid wealth management products in the portfolio.

(6) The transaction cost is different. In addition to the transaction price, closed-end funds have to pay a certain percentage of securities transaction tax and handling fees. The related expenses of open-end funds are included in the fund price.

(7) The net assets of fund units shall be announced in different periods. Closed-end funds are generally published once a week or three months. Open-end funds are basically announced continuously every trading day.