Closed-end fund refers to the total amount of funds issued in advance when the fund sponsors set up the fund. When the raised amount exceeds 80% of the total amount, the fund is announced to be established and closed, and no new investment will be accepted during the closed period.

For example, funds listed on Shenzhen Stock Exchange were established in Kaiyuan (4688) and 1998, and issued 2 billion fund shares, with a duration (closed period) of 15 years. In other words, the operating period of the fund from 1998 is 20 years, and the operating quota is 2 billion. During this period, investors can't ask for the return of funds, and the fund can't add new shares.

Although investors are not allowed to ask for the return of funds during the closed period, funds can circulate in the market. Investors can cash out through market transactions.

The circulation mode of closed-end fund shares in China is listed on the stock exchange, and investors must bid for and buy fund shares in the secondary market through securities companies.

(Note: The duration of a fund refers to the time from establishment to termination. )

open-ended fund

Open-end fund refers to a fund whose total amount of fund issuance is not fixed, and the total amount of fund shares increases or decreases at any time. Investors can purchase or redeem fund shares at the business place determined by the fund manager according to the fund quotation.

Open-end funds can be issued according to the needs of investors or redeemed according to the requirements of investors. For investors, the issuer can be required to redeem the fund after deducting the handling fee according to the current net asset value of the fund, or it can buy the fund again to increase the unit share of the fund.

For example, Huaan Innovation, the first open-end fund in China, issued 5 billion fund shares for the first time. Founded in 200 1 year, it has no duration. However, the fund units that issue 5 billion yuan for the first time will change at any time after the opening of the gate. For example, they may decrease due to redemption by investors, or they may increase due to investors' subscription or choice of "dividend reinvestment".

In China, the trading of open-end fund shares is carried out through subscription and redemption at the direct selling outlets or consignment outlets (mainly bank outlets) of fund management companies, and the subscription and redemption of investors are carried out through the counters, telephones or websites of these outlets.

The difference between closed-end fund and open-end fund

The main differences between closed-end funds and open-end funds can be seen from the following table:

close-ended fund

open-ended fund

trading place

Shenzhen and Shanghai stock exchanges

The outlets of fund management companies or consignment agencies (mainly banks and other outlets)

Fund term

Have a fixed term

There is no fixed term.

Fund size

Quota, generally can't increase the issue.

There is no size limit (but there is a minimum size limit)

Redemption restriction

If the fund cannot be redeemed directly within the time limit, it needs to be cashed out through listing transactions.

You can apply for purchase or redemption at any time.

Trading means

Listing transaction

The outlets of fund management companies or consignment agencies (mainly banks and other outlets)

Price determining factor

The transaction price is mainly determined by the relationship between market supply and demand.

The price is based on the fund's net asset value.

Dividend method

cash dividends

Cash dividends and reinvested dividends

expense

Transaction costs:

2.5% of the transaction amount

Subscription fee: no more than 5% of the subscription amount.

Redemption fee: no more than 3% of the redemption amount.

investment strategy

Closed-end funds are not redeemable, and there is no need to withdraw reserves. They can make full use of funds, make long-term investments and achieve long-term business performance.

Some cash or liquid assets must be reserved for investors to redeem at any time, and long-term investment will be restricted. Faced with redemption pressure at any time, it is necessary to pay more attention to risk management such as liquidity and require fund managers to have a higher level of investment management.

information disclosure

The net asset value of a fund unit is published at least once a week.

Announce the net asset value of the unit every open day.