Why do closed-end funds lose money if they don't open positions? What is the loss?

A newly issued fund generally has a closed period, and the closed period of each fund varies with different fund types. The so-called fund closure period refers to the time when the fund manager cannot accept the subscription, redemption and other businesses within the time limit stipulated in the fund contract and prospectus at the initial stage of the establishment of an open-end fund.

Regarding whether there is any income in the closed period of the new fund, the situation of different funds is different. For money funds and bond funds, it is definitely profitable, but because of the open period, the general income will be relatively low. For equity funds, it's hard to say. If the stock market falls during the opening period, it is not a gain. Maybe after the liquidation period, the net value will be lower than 1 yuan, which is actually a loss.

My suggestion is:

1. If you can subscribe for the old fund, try not to subscribe for the new fund unless it will not be opened again in the future.

2. The popularity of new fund issuance is our investment vane. No fund company dares to issue new funds, but it is safer to enter the market.

Many investors like to buy new funds. At this time, we have to face different time periods such as fund raising period, closed period and open period, and the net value of the fund will also change.

Have closed-end funds started to open positions? Will there be losses? Let's be specific.

0 1 correctly distinguish between "fund raising period" and "fund closing period". From fund raising to normal trading, open-end funds usually go through three cycles, namely, fund raising period, closed period and normal subscription and redemption period.

The longest feeding period is not more than three months. If the number of shares is reached in advance, the offering period can be ended in advance. If the expected scale is not reached, the fund cannot be established; If the share limit is exceeded, it cannot be confirmed.

In order to avoid raising too much funds and affecting investment efficiency, fund companies usually limit the raising limit and implement proportional placement according to the established limit.

Closed-end period is a necessary stage for open-end funds, which provides a relatively stable time for fund managers to open positions, and fund managers should reach the expected positions as soon as possible. For example, hybrid funds require a shareholding ratio of more than 80%, that is, the end of the closed period, and the fund manager must complete the opening.

The closure period of the new fund shall not exceed 3 months, and the specific duration shall be determined by the fund manager according to market conditions, opening speed and fund size. Recently, the closed period of newly issued funds is relatively short, and many funds are open for purchase and redemption within ten days.

To sum up, funds that have entered the closed period have already started to open positions. With the operation of stock trading, funds will naturally have profits or losses. The subject should have confused the concepts of "closed period" and "rising period", leading to misjudgment.

Why do closed-end funds lose money? After more than 20 years' development, there are more than 6,000 funds in the fund market, with various types and great differences among different funds.

The main investment target of money funds and bond funds is "fixed income assets", which usually get income in the closed period, but the income level is relatively low because the closed period is still in the open period.

Active funds and passive funds mainly invest in the "stock market", so it is impossible to determine the income of the closed period. If the opening coincides with the stock market crash and the closing period ends, it is also possible that the net value will fall below 1 month.

When the new fund is issued, there are strict restrictions on the shareholding ratio of the fund. According to Chapter IV Investment and Income Distribution of Securities Investment Funds, more than 60% of the fund assets of stock funds should be invested in stocks, and more than 80% of the fund assets of bond funds should be invested in bonds.

For stock funds, fund managers should buy a large number of stocks during the closed period to ensure that the fund can complete the opening of positions within three months, and the shareholding ratio meets the requirements of relevant laws and regulations.

In the process of opening positions, even if the market has been falling, fund managers should continue to buy. At this time, the net value of the fund will fall, and it is not surprising that the fund will lose money.

In the market downturn, the loss of funds in the closed period is the loss of stock investment. After all, the performance of equity funds is synchronized with the A-share market.

The open rules of funds are also the reason why many people are reluctant to buy new funds. Under the constraint of rules, the decision-making space of fund managers is very small. Even if they are not optimistic about the market performance, fund managers must quickly absorb shares in the ultra-short-term closed period and complete the opening of positions.

In addition to buying stocks may lead to losses, the fund's expenses are also the reason for the fund's losses during the closed period.

In addition to subscription and redemption fees, fund fees also involve management fees, custody fees and sales service fees. This money is mainly used for the day-to-day operation and management of the fund, to pay the revenge of the fund manager, to pay the bank custody fee or to pay the commission of the sales organization.

Under normal circumstances, the above related expenses are accrued on a daily basis. Regardless of the performance of the fund, whether it is making money or losing money, the fund company will charge fees according to the proportion of fund shares held by investors.

Therefore, although the fund is in a closed period, it still needs to pay various fees, which in turn leads to the reduction of investors' rights and interests and a small loss of the fund.

To sum up, closed-end funds have begun to open positions, and for money funds and bond funds, the possibility of losses is not great; But for stock funds, the behavior of fund managers buying and selling stocks may lead to losses; In addition, the related expenses of the fund are also an important reason for the loss of the fund.

Did the fund manager "steal food"? Why do closed-end funds also lose money?

There will be a question when you see the topic in the process of fund issuance: isn't the closed-end fund a position?

In fact, the issuance of open-end funds is generally divided into three processes: raising period, closing period and duration.

(1) Feeding period

The period from the announcement of the fund to the establishment of the fund is the raising period. At this stage, investors can only subscribe for fund shares and cannot redeem them.

The raising period of general funds ranges from 1 to 3 months, but the fund market is relatively hot in the past two years. Most new funds can be raised in just one or two weeks, and even a few explosions can be raised in two days. Over-raised funds allocate fund shares through matching.

After the target share raising is completed, the fund will end raising and enter the closed period after auditing and capital verification; If the scale in the prospectus announcement is not reached at the end of the raising period, the fund cannot be established.

② Closed period

After the fund is raised and the fund contract comes into effect, the fund enters a closed period, and investors cannot purchase and redeem the fund at this stage.

For open-end funds, the closed period is a necessary stage, and fund managers can open positions during this period. The length of the closure period mainly depends on the fund manager's speed of opening positions according to market conditions and fund size. However, in the Measures for the Operation and Management of Securities Investment Funds, it is stipulated that the closed period of open-end funds shall not exceed 3 months at the longest. When the stock market was good in the past two years, fund managers opened positions quickly and closed for a short period.

(Note: Closed-end funds will open positions, only funds in the raising period will not open positions, and it is normal for funds to lose money as long as they open positions and buy and sell stocks. )

③ Duration

Duration refers to the stage when the fund completes the open operation and can be purchased and redeemed normally after the closed period.

Under normal circumstances, all funds can subscribe at this stage, but in a good market situation, a small number of funds may stop subscribing to control the scale for the fund manager to control.

Why do closed-end funds lose money? What are the losses?

There are two main reasons for the loss of closed-end funds:

① The net value fluctuates after opening the position.

As mentioned above, the closed period is the time to open positions after the fund raising is over. Different types of funds have different investment targets, so the probability of loss is also different. For example:

Money fund investment direction is low-risk money market, and it is basically impossible to lose money; The investment direction of bond funds is low-risk bond market, and the possibility of loss is very small. However, some time ago, the bond market fluctuated greatly, and bond funds in the raising period may have losses. There are also funds that have invested in the stock market. After holding a position, it is normal for the net value to retreat because the stock has fallen.

This kind of loss is a normal investment loss, because fund managers are eager to open positions in a relatively short period of time, and the probability of obtaining positive returns in the investment process is not guaranteed, which is why many investors do not like to subscribe for new funds during the fundraising period.

② expenses

When we purchase and redeem the fund, we usually see the subscription fee and redemption fee, but in fact, the fund investment also includes a series of expenses such as operation fee, management fee, custody fee and sales service fee.

From the names of these expenses, we can find that they are mainly used to pay the expenses of fund companies, fund managers, banks and so on. No matter whether the fund makes money or loses money, these expenses will be accrued on a daily basis, which is directly reflected in the net value of the fund, which is why many people say that fund companies make money stably.

This "loss" is equivalent to the cost of purchasing professional financial services.

To sum up: on the one hand, because of the open operation in the closed period, the decline in the net value of the fund may lead to losses due to changes in the market; On the other hand, there will be some expenses during the operation of the fund, which will also lead to "losses" when the fund does not make money.