Fund Forms
Open-end Funds
Open-end Funds (LOF), known as "ListedOpen-EndedFund" or "open-endfunds" in English, is called "open-endfunds" in Chinese. ", Chinese called "listed open-end funds", also known as *** with the fund in foreign countries. In other words, after the issuance of listed open-end funds, investors can either subscribe and redeem fund shares at designated outlets, or buy and sell the funds on the stock exchange. However, if an investor subscribes for fund shares at a designated outlet and wants to sell them online, he or she has to go through certain transfer of custody procedures; similarly, if he or she buys fund shares online on the exchange and wants to redeem them at a designated outlet, he or she also has to go through certain transfer of custody procedures. It is a kind of fund whose issue amount is variable, the total number of fund shares (or units) can be increased or decreased at any time, and investors can subscribe or redeem at the business place designated by the fund manager according to the fund's offer. Compared with closed-end funds, open-end funds are particularly suitable for small and medium-sized investors as they are characterized by no restriction on the number of shares to be issued, purchase and sale prices based on net asset value, over-the-counter trading and relatively low risk.
Two, closed-end funds
belong to the trust fund, refers to the size of the fund has been determined before the issuance of a fixed period of time after the completion of the issuance of a fixed period of time and traded on the stock market investment funds. As the closed-end funds are traded on the stock exchange in the form of competitive bidding, the trading price is affected by the market supply and demand and does not necessarily reflect the net asset value of the fund, i.e., relative to its net asset value, the closed-end fund trading price has a premium, discount phenomenon. Foreign closed-end fund practice shows that its trading price often exists first premium and then discount price fluctuation law. From the operation of our closed-end fund, regardless of how the fundamentals of the situation changes, China's closed-end fund trading price trend has not been able to get out of the first premium, discount price fluctuations in the law.