Can closed-end funds be redeemed in advance?
Closed-end funds can be redeemed at maturity. There are two main situations.
1. Generally, closed-end funds will enter the open period after maturity. During the opening period, investors can redeem funds, and some funds will be settled directly after maturity. In this case, even if the investor does not redeem the fund, the fund will transfer the principal and income into the investor's fund account after settlement.
2. After the expiration of some closed-end funds, they will extend the contract period of the funds and continue a new round of investment. At this time, investors can continue to participate in a new round of fund investment if they don't want to redeem the fund.
The difference between closed-end fund and open-end fund
Closed-end fund is an investment method with limited fund share. Investors can only buy at the time of establishment or through secondary market transactions, and there is no other operation to increase or decrease the share. Open-end funds usually have no fund share limit, and investors can buy and sell freely, and can participate in or withdraw from the fund at any time.
The investment enthusiasm of closed-end funds is not as hot as that of open-end funds, because closed-end funds need to pay high fees when purchasing, and they can't buy and sell in real time, so it is difficult to meet the needs of investors. Open-end funds can be continuously expanded or reduced according to market demand. In addition, investors of closed-end funds cannot withdraw at any time, but only when the fund expires or is transferred. Open-end funds can be redeemed at any time, which is convenient and flexible.
Therefore, when we choose a fund, we should look at our own funds and make a comprehensive analysis. But no matter which fund you choose, you should try to understand their investment scale and cost.
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