In fund investment, we hope to gain income through the market, but investment is risky and there will be discounts at the same time. We may have paid attention to the information of fund discount. What is this? And what is the discount rate of the fund? Let's look at the discount rate of the fund.

What is the discount rate of the fund?

I. Net value of closed-end funds

Net worth, well understood, is the actual value of closed-end funds.

We can get the latest net value of closed-end funds through the following pages in Collection of Thoughts: We can see that the net value of venture LOF (160143) 20230712 is 1. 1067 yuan after the closing.

Second, the price of closed-end funds.

The price is the actual transaction price of closed-end funds in the secondary market. The secondary market is the market where you trade stocks through the brokerage APP.

It is still explained by the first LOF( 160 143), and its latest price in the secondary market is 1.087 yuan.

Third, what is discount?

The actual value of each startup LOF( 160 143) is 1. 1067 yuan, but if you are in a hurry to cash out, you can only sell some startup LOFs in the secondary market for 1.087 yuan each.

This is a discount. The transaction price on the floor is lower than the net value.

Any variety that is traded in multiple markets at the same time will have the problem of discount (or premium).

During the closed period, most closed-end funds are at a discount.

Very easy to understand. If you are in a hurry to cash out something that is originally worth 1.5 yuan, you will definitely lose some money. Only if you sell 1.3 yuan will someone accept your offer.

4. What is the discount rate of closed-end funds?

The discount rate is how much the closed-end fund is lower than its actual value when trading in the secondary market.

For example, the transaction price of LOF( 160 143) in the secondary market is 1.087 yuan, and its actual value is1.

The discount rate can be calculated as (1.1067-1.087)/1.1067 =1.780%. You can directly find the discount rate of closed-end funds from various market tools without calculating it yourself:

The higher the discount rate, the more cost-effective we can buy closed-end funds in the market.

Discount rate is one of the two most important angles to choose closed-end funds, and the other angle is the texture of closed-end funds themselves, which will be analyzed in a special article in the near future.

What does the fund discount rate mean?

To know what is the fund discount rate, we must first understand what is the fund discount rate.

According to different investment channels, funds can be divided into on-site funds and off-site funds, which we are all familiar with. On-site funds are traded in the secondary market, similar to stocks, and their prices change in real time. OTC funds are redeemed in banks, Tiantian Fund, Alipay and other institutions. During the trading day, the net value of the fund will only change once, calculated according to the closing price.

Then closed-end funds can be purchased off-site or traded on-site, which leads to price differences. When the transaction price of closed-end funds in the secondary market is lower than the actual net value, this situation is called "discount". From this, the rate of the fund can be calculated, and the specific formula is as follows.

Discount rate = (unit net share-unit market price)/unit net share.

According to this formula, when the discount rate is greater than 0, that is, the net value is greater than the market price, it is a discount, and when the discount rate is less than 0, that is, the net value is less than the market price, it is a premium.

As for whether the discount rate of funds is positive or negative, it mainly depends on how we operate. When the discount rate is positive, it means that the market price of the fund is lower than the net market value. Investors can buy the fund in the secondary market and then apply for redemption outside the market to earn risk-free spreads. If the discount is negative, it means that the market price of the fund is higher than the net value. Investors can buy funds at the counter and then sell them in the secondary market to earn risk-free spreads.

What is the discount rate of the fund?

When investing in closed-end funds, pay attention to choosing funds with large discount rate. Because closed-end funds should be paid or liquidated according to their net value after the operation expires, the higher the discount rate, the greater the potential investment value. In principle, we should choose "excellent combination, high discount rate, small plate and close to maturity" arbitrage.

Because the fund is listed on the exchange, its transaction price is 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 fund shares may be higher than the net asset value of each fund share, and then the fund assets owned by investors will increase, that is, a premium will be generated; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund unit, which means discount. At present, the discount rate of closed-end funds is still high, mostly between 20% and 40%, among which the discount rate of small and medium-sized funds with short term is low. It is certainly better to buy the same fund when the discount rate is high; However, the choice of funds should not only look at the discount rate, but also choose some small and medium-sized funds with moderate discount rate and short term.

The expenses directly borne by fund investors refer to the one-time expenses paid by investors when conducting fund transactions. For closed-end funds, like buying and selling stocks, a certain percentage of commission is paid outside the price. For open-end funds, it mainly refers to subscription fee and redemption fee. What is the calculation method of fund discount rate? Fund discount rate = (unit net value-unit market price)/unit net value. According to this formula, when the discount rate is greater than 0, it is discount, and when the discount rate is less than 0, it is premium. In addition to investment objectives and management level, discount rate is an important factor in evaluating closed-end funds. Can the fund discount rate be bought with high energy?

Of course, it is under various unfavorable circumstances that the discount rate of fixed-income funds is generally enlarged. However, it is the existence of discount that provides a safe buffer for investing in fixed-income funds. Fixed-income funds are mostly designed as 18 months, 24 months or 36 months, and then transformed into ordinary LOF (open-ended listed fund) funds after maturity. According to previous investment experience, the closer the deadline is, the narrower the discount will become, because as an open-end fund after maturity, even if there is a discount in the market, investors can realize discount arbitrage by buying and redeeming, so it is impossible to have a large discount.

If you invest in a fixed-income fund and hold it until maturity, you can enjoy the opportunity brought by the shrinking discount over time. However, at the same time, it faces the risk that the stocks in positions fluctuate with the market, and at the same time, it is necessary to consider the time cost of maturity. Investors must be aware that if the stock they hold falls more than the discount before the fixed-income fund expires, there will still be losses.

Choosing a fixed-income fund with a short term can reduce the time cost of holding positions, and on the other hand, because of the short maturity date, the position change of the fund will also be reduced. At the same time, choose some fixed-income funds with lower positions. In this way, we can not only enjoy the investment opportunities brought by the discount, but also avoid the risk of fluctuation as much as possible.

Under the opportunity of the transformation from closed-end funds to open-end funds, the "discount" of closed-end funds can become an intimate theme for investors. Due to the large discount rate, once the closed-end fund is opened or the closed-end fund expires, the discount of the fund will drop, the unit net value will be "scratched" and investors will earn the difference.