The advantage of closed-end funds is that there will be discount and premium transactions in the secondary market, which provides investors with the possibility of earning the difference. Moreover, because the closed-end fund shares are fixed and there is no redemption pressure, the fund investment manager can make long-term investment and full investment according to the pre-set investment plan, and invest the fund assets in securities with relatively weak liquidity, which is conducive to the improvement of the long-term performance of the fund to a certain extent.
Mr. Xu, 30, is a Chinese teacher in a middle school in Beijing, and his income is relatively stable. Recently, I heard that closed-end fund investors have gained a lot, which makes Mr. Xu envious. At the beginning of April, he took out his savings of 20,000 yuan to buy a closed-end fund, which rose by three points the next day. A few days later, the stock market plummeted, and the fund he bought was also affected. He began to feel depressed. Why is the seal base so unstable? How should he invest?
Investing in closed-end funds is suitable for two types of people. First, the veteran securities market buys closed-end funds as the purchase index, so that the risk of investors will be slightly reduced and they can also share the expected annualized expected return of the stock market; Second, medium and long-term investors don't have to pay attention to its ups and downs in a trading day, and hold closed-end funds until the duration of closed-end funds ends or becomes open-ended. In this way, investors can choose closed-end funds according to their planned holding time and different duration of closed-end funds.
The fluctuation range of closed-end funds is larger than that of open-end funds, which is not suitable for investors who are new to the market and have weak risk awareness. Investors are advised to think more before choosing closed-end funds.