What Is a Close Period?

The so-called closed-end period of an open-end fund refers to a period of time after which the fund successfully raises sufficient funds to announce the effectiveness of the fund contract, and there will be no period for accepting an investor's application for redemption of fund shares. The closed period is set on the one hand to facilitate the fund's back-end (registration center) to make the best preparations for future purchases and redemptions; on the other hand, the fund manager can complete the initial investment based on the securities market conditions. arrangement. According to the "Administrative Measures for the Operation of Securities Investment Funds", the closing period of funds must not exceed 3 months.

Fund closing period

From the process of raising funds to investing in open-end funds, it has gone through 4 periods: a fundraising period, a capital verification period, a closed period, and a normal purchase and redemption period. During these 4 periods, investors bought and sold.

During this period

After the end of the fundraising period, the foundation enters a capital verification period of up to 7 days. After the capital verification is completed, the fund contract is formally established, and the fund enters a closed period. At this time, the fund contract has entered into force, but during the closed period, the fund does not Accept investor purchases or

The fund can accept both purchases and redemptions at the same time, which has entered the normal purchase and redemption period. Investors can purchase and redeem the fund according to the net share of the open-end fund every day.