After the closed-end fund is issued and listed, the scale of the fund shall not be expanded without legal procedures. However, the scale of open-end funds is not fixed. Generally, three months after the establishment of the fund, you (investors) can subscribe for new fund shares at any time, or redeem the fund shares from the fund management company at any time. Investors generally buy funds with good performance and redeem funds with poor performance. As a result, the scale of funds with good performance will become larger and larger. On the other hand, the fund with poor performance will be abandoned by investors, and its scale will gradually shrink until the scale is less than a certain standard, and the fund will be liquidated.

2. Different deadlines

Closed-end funds usually have a fixed duration, and the duration of closed-end funds in China is 10 year or 15 year. The fund shall be liquidated when it expires, and the duration may be extended unless it is approved by the fund holders' meeting and approved by the regulatory authorities. However, open-end funds have no fixed duration. As long as the operation of the fund is recognized by the fund holders and the scale of the fund is not less than the prescribed minimum standard, the fund can continue to exist.

3. Different prices

When closed-end funds are listed and traded in the secondary market of the stock exchange, their prices go with the market, which are directly affected by the relationship between fund supply and demand, other fund prices, stock market and bond market, and may be higher or lower than the net asset value of the fund unit, resulting in the phenomenon of "discount" or "premium" between the fund price and the net asset value of the fund. The net asset value of a fund is generally published regularly (China's securities investment funds are published every other week). The subscription and redemption price of open-end funds is based on the daily net asset value of funds, plus necessary subscription and redemption fees. This price is not affected by the change of supply and demand in the fund market and related markets (stock market and bond market), and is determined by the fund manager according to the net asset value of the fund unit, and is basically published continuously (for example, once every trading day).

4. Different trading methods.

From the point of view of transaction mode, closed-end funds are generally listed on the stock exchange or transferred over the counter, and transactions are conducted between fund investors, and only between fund investors and fund managers or their agents when the fund initiates to accept subscriptions and when the fund is closed for liquidation. However, the trading of open-end funds has always been between fund investors and fund managers or their agents (such as business outlets of commercial banks and securities companies), and there is no trading behavior between fund investors.

5. Information disclosure requirements are different.

Closed-end funds do not have to publish their net assets every day. Now our country stipulates that they only need to publish their net assets once a week. Open-end funds require fund management companies to announce the net asset value of fund units on each open day, and determine the transaction price according to the net asset value of fund units, and accept the subscription and redemption of funds.

6. There are differences in investment strategies.

Theoretically, after the establishment of closed-end funds, fund managers can make long-term investments because the scale of funds is fixed for a long time during the whole closed-end period. Open-end funds should respond to investors' subscription and redemption at any time, especially in order to prevent investors' redemption, fund assets must keep some cash and highly liquid assets. In case of large-scale redemption (huge redemption), the fund assets should be realized quickly. Therefore, all assets of open-end funds cannot be invested for a long time. In terms of liquidity requirements of fund assets, open-end funds are much higher than closed-end funds.

7. There are differences in management difficulty.

Judging from the difficulty of management, the management of closed-end funds is less difficult, and the fund assets can operate calmly during the closed period of the fund; However, the management of open-end funds is more difficult, and the portfolio requirements of fund assets are high, so investors should be prepared to purchase or redeem.

Generally speaking, open-end funds provide more, more timely and more accurate information than closed-end funds, which is relatively more conducive to investors' grasp and investment in funds. Investors show greater preference for open-end funds, thus forming the mainstream position of open-end funds.