Excuse me; What is an open-end fund? What is a closed-end fund?

Open-end fund, also known as * * * mutual fund, refers to a fund operation mode in which fund sponsors can sell fund shares or shares to investors at any time according to their needs and redeem the issued fund shares or shares at the request of investors. Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly.

Closed-end fund refers to a securities investment fund that has determined the total amount of issuance and the issuance period at the time of establishment, and fixed the total amount of issuance within the prescribed period after issuance. Investors of closed-end funds can't redeem their fund shares from the issuer during the fund's existence, and the realization of fund shares must be listed and traded on the stock exchange. The circulation of fund shares is listed on the stock exchange, and investors must bid on the secondary market through securities brokers in the future.

Extended data:

Three basic principles should be grasped in investing in open-end funds.

First, you need to know what your investment goal is, how long the term is, and how much investment risk you can bear. Have a correct understanding and judgment on the investment style, past operating performance and rate level of different fund management companies.

Second, there is no unrealistic expectation of its rate of return, because a certain degree of risk always exists.

Third, the open-end fund is a medium-and long-term investment variety and an effective way to share the long-term growth of the capital market, which is not suitable for short-term speculation. To evaluate the performance of the fund, we should examine it in a long period of time. Only funds that can stand the test of time are truly worth investing in. Short-term frequent purchase and redemption is not only high in investment cost, but also difficult to obtain expected returns.

Baidu Encyclopedia-Open Fund

Baidu encyclopedia-closed-end fund