What is a closed-end fund? Closed-end funds refer to fund products that investors cannot apply for redemption of funds within a certain period of time. The closure period is generally 1 to 3 years. During this period, investors can only transfer money in the secondary market and cannot directly redeem funds from fund companies. The investment threshold of closed-end funds is relatively high, and investors need to have certain risk tolerance and investment experience.
? Closed-end funds are usually closed for 1 to 3 years, and investors cannot redeem the fund from the fund company during the holding period. If the investors really have urgent needs or special circumstances, they can transfer the fund shares to other investors through the secondary market to get back the funds. The holding period of closed-end funds is not absolute, but can be flexibly adjusted to some extent.
What are the risks and benefits of a 3-year closed-end fund? The investment risk of closed-end funds is relatively high, because investors can't redeem the funds at any time, and they have to wait until the end of the closed-end period to get the principal and income. The investment strategy of closed-end funds tends to the direction of high risk and high return, which requires investors to have certain risk tolerance and investment experience. However, the income of closed-end funds is relatively high, which can bring considerable investment return.
How to choose a 3-year closed fund? When choosing closed-end funds, we should pay attention to the following aspects: choose fund companies and fund managers with high reputation and stable performance to ensure the safety and profitability of investment. According to their own investment objectives and risk tolerance, we should choose the appropriate closed-end fund varieties and investment strategies. It is necessary to have a comprehensive understanding of the investment cycle, rate of return and expenses of the fund in order to make more wise investment decisions.
What are the advantages and disadvantages of closed-end funds? The advantages of closed-end funds are: 1. Long investment cycle can effectively avoid investors' short-term trading behavior; 2. The investment risk and income are relatively high, which can bring considerable investment return; 3. Fund companies can pay more attention to investment management and improve investment efficiency and performance. Disadvantages are: 1 Lack of liquidity, investors can not redeem funds at any time; 2. The investment risk is high, which requires investors to have certain risk tolerance and investment experience; 3. Higher expenses, including fund management fees and sales expenses.