What is a closed-end fund What to watch out for when buying closed-end funds

When an investor decides to start investing, he will be faced with a choice. When choosing a financial product, everyone should pay more attention to relevant matters. Today, I will take a closed-end fund as an example to give you an inventory of the closed-end fund. What things.

Brief introduction of closed-end funds

A closed-end fund refers to the limit of the total amount of fund units to be issued when the fund is established. After the initial issuance reaches a predetermined issuance plan, the fund is declared to be established and closed. Unless otherwise approved, the fund units will no longer increase or decrease. If a new investor wants to buy fund coupons, they can only buy them from the fund coupon holders, but not from the fund company. If the original investor wants to cash out the beneficiary certificates or shares, he cannot ask the fund company to redeem only Can be transferred to a third party.

Note for closed-end funds

1. The statistics of upturn experts found that for a long period of time, the closed-end fund's price-to-book ratio has a strong negative correlation with its size, and among the funds of the same size, the price-to-book ratio of different funds has also maintained. It is a relatively stable relative strength relationship. Therefore, when choosing a fund based on the P / B ratio, investors need to consider the relative upside of the fund's P / B ratio, not the discount situation.

2. Interim dividend According to the relevant fund management regulations, the net value of the unit after the dividend must not be lower than the face value. For the sake of stability, first consider the fund whose unit net value is greater than 1.05 yuan at the end of 2004. In addition, the fund must make up for the losses of the previous year when dividends are distributed. Funds with a unit net value greater than 1.05 yuan also all meet this condition.

3. Operating conditions From the perspective of the market operation situation and the rules of the market operation, the trend of the stronger will not change much in the short term. Therefore, in the same situation, it is necessary to give priority to those who have chosen the fund since the beginning of the year. Funds with good unit net value growth since.

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