The total fund share of closed-end funds is fixed, but they all have a certain closed period, which is suitable for long-term investment. Different funds have different closed-end periods, but they are generally longer, so investors are required to have higher liquidity. Can a three-year closed-end fund be redeemed in advance?

Can a one-or three-year closed-end fund be redeemed in advance?

After the fund raising period, it will enter the closed-end period, mainly to provide a relatively stable opening process for the fund. Under normal circumstances, closed-end funds cannot be redeemed during the closed period, and they will no longer accept new subscription requests until a new round of opening, which is generally one week.

There are two ways to deal with it after the expiration of the closure period. One way is to turn it into an open-end fund and redeem it after it is confirmed. The other is the direct liquidation of the fund, which is calculated according to the net assets (net value) of the fund. Relatively speaking, it is more beneficial for investors to switch to open-end funds.

However, some closed-end funds allow investors to redeem in advance during the closed period, but they need to pay a high redemption fee, which is very uneconomical for investors. Whether to support early redemption depends on the transaction contract.

II. How to trade closed-end funds

Although the closed-end funds cannot be redeemed, they can be traded by bidding in the secondary market like buying and selling stocks. Investors can sell their funds or buy closed-end funds in the hands of others. What is circulating in the secondary market is the fund share, not the subscription or redemption, so the overall fund share remains unchanged.

Closed-end funds have higher requirements for investors' funds, and they must have certain risk tolerance, and ordinary investors need to buy them carefully. The above content about three-year closed fund can be redeemed in advance, I hope it will help everyone. Warm reminder, financial management is risky, and investment needs to be cautious.