The buying price and selling price of fund units are formed in different ways. Because closed-end funds are listed on the exchange, their buying and selling prices are greatly influenced by the relationship between market supply and demand. When the market supply is less than the demand, the buying and selling price of a fund unit may be higher than the net asset value of each fund unit.
The fund assets owned by investors will increase; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund unit. The buying and selling price of open-end funds is calculated based on the net asset value of the fund unit.
Extended data:
Fund units buy and sell in different ways. When a closed-end fund is initiated, investors can subscribe to the fund management company or sales organization; When closed-end funds are listed and traded.
Investors can also entrust brokers to buy and sell at market prices on the stock exchange. When investors invest in open-end funds, they can purchase or redeem them from fund management companies or sales organizations at any time.