The price of closed-end funds traded on the floor is lower than their actual net value, which is called discount rate. The problem of discount rate is widespread in closed-end funds traded on the floor.

Because closed-end funds are redeemed at net value after the expiration of operation, funds with high discount rate can earn poor prices, especially closed-end funds that are about to expire, so closed-end funds with high discount rate are sought after and their prices rise. However, not all funds with high discount rate will be sought after. The key is to see if its performance is good. If its performance is good, the fund will be sought after, and if its performance is not good, it may not rise.