According to Cailadder.com's survey, a high premium only means far exceeding the actual value. In funds, high premium means that the transaction price of closed-end fund market is higher than the net asset value of fund unit. Buying at a high premium will face certain risks.

Premium is a term in the securities market, which means that the amount actually paid exceeds the par value or face value of securities or stocks. On the other hand, in the fund, it refers to the value that the transaction price in the closed-end fund market is higher than the net asset value of the fund unit.