1. Is the closed-end fund safe?
The biggest feature of closed-end funds is that investors can't purchase and redeem during the closed period, and the transactions of funds can only be conducted in the secondary market through securities brokers during the duration.
So, are closed-end funds safe? First of all, closed-end funds have a discount rate, and the higher the discount rate, the safer it is; Secondly, the total fund share of closed-end funds remains unchanged during the duration, and fund managers do not have to worry about redemption, and boldly operate to increase expected returns; And compared with open-end funds, closed-end funds are safer and safer.
To sum up, the security of closed-end funds is still very high.
2. What are the risks of closed-end funds?
1, market risk
1) Interest rate change risk: Interest rate risk mainly comes from the change of RMB deposit interest rate, and the investment direction of closed-end funds is highly related to interest rate.
2) Liquidity risk: Liquidity risk is mainly that closed-end funds have a closed period and do not provide early redemption.
3) Policy risk: The investment direction of closed-end funds is mostly low-risk investment tools. If the market encounters policy changes, it will create obstacles to value-added.
2. Investment risk
Closed-end funds mostly invest in products with low risk of expected return, such as bonds, so the investment risk is low, but the price changes in the financial market are unpredictable, and closed-end funds cannot avoid the possibility of losses in the falling market.
So much about the security and risks of closed-end funds, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.