Closed-end fund Closed-end fund refers to a fund sponsor who determines the total amount of issuance in advance when setting up a fund. When the raised amount exceeds 80% of the total amount, the fund is announced to be established and closed, and no new investment will be accepted during the closed period. For example, funds listed on Shenzhen Stock Exchange were established in Kaiyuan (4688) and 1998, and issued 2 billion fund shares, with a duration (closed period) of 15 years. In other words, the operating period of the fund from 1998 is 20 years, and the operating quota is 2 billion. During this period, investors can't ask for the return of funds, and the fund can't add new shares. Although investors are not allowed to ask for the return of funds during the closed period, funds can circulate in the market. Investors can cash out through market transactions. The circulation mode of closed-end fund shares in China is listed on the stock exchange, and investors must bid for and buy fund shares in the secondary market through securities companies. (Note: The duration of a fund refers to the time from establishment to termination. Open-end fund Open-end fund refers to a fund whose total amount of fund issuance is not fixed, and the total amount of fund shares increases or decreases at any time. Investors can purchase or redeem fund shares at the business place determined by the fund manager according to the fund quotation. Open-end funds can be issued according to the needs of investors or redeemed according to the requirements of investors. For investors, the issuer can be required to redeem the fund after deducting the handling fee according to the current net asset value of the fund, or it can buy the fund again to increase the unit share of the fund. For example, Huaan Innovation, the first open-end fund in China, issued 5 billion fund shares for the first time. Founded in 200 1 year, it has no duration. However, the fund units that issue 5 billion yuan for the first time will change at any time after the opening of the gate. For example, they may decrease due to redemption by investors, or they may increase due to investors' subscription or choice of "dividend reinvestment". In China, the trading of open-end fund shares is carried out through subscription and redemption at the direct selling outlets or consignment outlets (mainly bank outlets) of fund management companies, and the subscription and redemption of investors are carried out through the counters, telephones or websites of these outlets. The main differences between closed-end funds and open-end funds can be seen from the following table: closed-end funds and open-end funds have deep trading places, and fund management companies or agency outlets (mainly banks and other outlets) on the Shanghai Stock Exchange have fixed duration. There is no fixed-term capital scale and fixed amount. It is generally impossible to increase the issuance, and there is no scale limit (but there is a minimum scale limit). Redemption limit cannot directly redeem the fund within the time limit. You can apply for subscription or redemption at any time by cashing in through listing transactions. Transaction mode: the price determinants of the outlets (mainly banks and other outlets) of listed trading fund management companies or consignment agencies. The transaction price is mainly determined by market supply and demand, and the price is determined according to the net asset value of the fund. Handling fee for cash dividend, cash dividend and reinvestment dividend: 2.5 ‰ of the transaction amount; Subscription fee: no more than 5% of the subscription amount; Redemption fee: no more than 3% of the redemption amount; Investment strategy Closed-end funds are not redeemable and do not need to withdraw reserves. They can make full use of funds, make long-term investments and achieve long-term operating results. Some cash or liquid assets must be reserved for investors to redeem at any time, and long-term investment will be restricted. Faced with redemption pressure at any time, it is necessary to pay more attention to risk management such as liquidity and require fund managers to have a higher level of investment management. The net asset value of information disclosure fund units shall be announced at least once a week, and the net asset value of fund units shall be announced once every open day. The characteristics of securities investment funds are as follows: Securities investment funds are funds operated, managed and specially invested in the securities market by experts. Fund assets are managed by professional fund managers. Fund managers are equipped with a large number of investment experts, who have not only mastered extensive knowledge of investment analysis and portfolio theory, but also accumulated quite rich experience in the investment field. Securities investment fund is an indirect way of securities investment. Investors indirectly invest in the securities market by purchasing funds. Compared with buying stocks directly, investors have no direct relationship with listed companies, do not participate in the company's decision-making and management, and only enjoy the right to distribute the company's profits. Securities investment funds have the advantages of small investment and low cost. In China, the face value of each fund share is RMB 1 yuan. The minimum investment of securities investment funds is generally low, and investors can buy more or less fund shares according to their own financial resources, which solves the problem that small and medium-sized investors have less funds and are difficult to enter the market. The cost of funds is usually very low. Securities investment funds have the advantages of portfolio investment and risk diversification. According to the experience of investment experts, it is usually necessary to hold stocks around 10 in order to at least spread risks in investment. There is a saying in investment science: "Don't put your eggs in the same basket". However, small and medium investors usually can't do this. If investors invest all their money in a company's stock, once the company goes bankrupt, investors may lose everything. Securities investment funds can form a strong financial strength by pooling the small funds of many small and medium-sized investors, and can also spread the investors' funds to various stocks at the same time, so that the losses caused by the decline of some stock prices can be made up by the profits of other stocks, which disperses the investment risks. Strong liquidity. The procedure for buying and selling funds is simple. For closed-end funds, investors can cash out directly in the secondary market, and the trading procedure is similar to that of stocks; For open-end funds, investors can purchase or redeem funds directly from fund managers, or through sales agencies such as securities companies, or entrust investment consulting agencies to buy and sell on their behalf.