What does innovative closed-end fund mean?
The product design of innovative closed-end funds is mainly entrusted to fund companies for research and development, and the regulatory authorities will not take the initiative to participate, but the regulatory authorities also have certain considerations on the product form of innovative closed-end funds.
Characteristics of innovative closed-end funds;
First, improve the fund governance structure, clearly stipulate the holding time of the holders' meeting, and ensure that the holders' meeting can exercise the rights conferred by the Fund Law.
Second, innovative closed-end funds may moderately relax investment restrictions and expand the scope of investment targets.
Third, the restrictions on investment ratio are moderately relaxed.
Fourth, it can be designed as a "semi-closed and semi-open" or other innovative trading mode, which can reduce the discount rate and improve its liquidity through regular and moderate opening.
Fifth, shorten the duration.
Sixth, reduce the rate of fixed increase and improve performance rewards, so as to urge managers to be diligent and conscientious.
The characteristics of closed-end funds:
1. Closed-end funds can only be purchased in the stock market and traded directly with people, while open-end funds can be traded directly with fund companies.
2. Closed-end funds may have premiums and discounts, that is, higher or lower than the actual market value of the fund. Everyone thinks that stocks will rise at a premium, and vice versa.
3. Closed-end funds are suitable for ultra-long-term or ultra-short-term investments.