It is normal for closed-end funds to have a discount rate. However, in the first decade of the stock market, there will be a state of net NAV 20 yuan and market price 60 yuan premium. There is no discount rate at this time, only premium rate. According to the experience at home and abroad, it is normal for closed-end funds to discount their trading prices. In addition to investment objectives and management level, the discount rate of closed-end funds is an important factor to evaluate closed-end funds, and investors with high discount rate of closed-end funds have certain investment opportunities. As for open-end funds, the discount rate is always zero. Because the market price of open-end funds is based on the net value, the net value NAV is 20 yuan, and the market price is 20 yuan, so there will never be a discount.
According to the different modes of operation, securities investment funds can be divided into closed-end securities investment funds and open-end securities investment funds. Closed-end securities investment funds, referred to as closed-end funds, are also called fixed-end securities investment funds. It refers to a securities investment fund whose capital scale does not increase or decrease within a specified time (also called "closed period") after a predetermined number of funds are issued. From the combination characteristics, it has important characteristics such as equity, creditor's rights and supervision. Open-end securities investment fund, referred to as open-end fund, is also called variable securities investment fund. Refers to the securities investment fund whose number of fund securities changes due to the issuance of new fund securities or the redemption of principal by investors. From the combination characteristics, it has important characteristics such as equity, deposit and flexibility.
Transactional open-end index fund is a special type of open-end fund, which combines the operating characteristics of closed-end fund and open-end fund. Investors can buy or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must use a basket of shares for fund shares or use a basket of shares for fund shares. Because there are both secondary market transactions and subscription and redemption mechanisms, investors can carry out arbitrage transactions when there is a difference between the market price of ETF and the net value of fund units. The existence of arbitrage mechanism makes ETF avoid the common discount problem of closed-end funds.