The Comparison And Choice Between Open-end Fund And Closed-ed Fund

Looking back upon the developing process of security investment fund in various countries, we can see it went from closed-end fund form to open-end fund one. As fund market in our country is in primary period, great contribution would be made to it, if we research and compare the two different organization forms as well as summarize the experience and lessons from transition of closed-end fund in mature security market. The following text definites concept, character and category of security investment fund, makes comparison and analysis between closed-end fund and open-end fund on basis of review of process of domestic and foreign fund market. In course of comparision, first from perspective of general view. Then from perspective of new institution economics, on one hand , it analyzes the difference between them in term of reverse choice and moral risk, on the other hand ,it analyzes the difference between them in saving exchange cost in three ways. In order to make conclusion of the passage more objective, more persuasive we make a regression of the two basic forms by using the data at the end of 2004.The finally conclusion is :open-end fund is our fund market is superior to closed-end fund. It's better to take action to change the old form than leave the closed-end fund marginalized. About the policy suggestion of this passage, it first analyzes influence of change on various participarts. Then it measures the four internationally popular change forms. This paper gives the suggestion that we should use LOF to make the transformation to be smooth and steady.