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What factors determine the transaction price of closed-end funds?
Net asset value of fund unit. This is the value basis of the fund transaction price, centering on the net asset value of the fund unit. Supply and demand of funds. Due to the limited issuers of closed-end funds, investors' demand for fund shares may exceed or fall below the market supply, resulting in a premium or discount in the transaction price of funds. Market abnormal factors. If investors have an incorrect understanding of the fund and artificially speculate, it may lead to fund price fluctuations. Closed can't be changed, there are only so many, and transactions can only be bought and sold in the market, depending on the relationship between supply and demand. The net value of closed-end funds you see, no matter how high or low, cannot be redeemed. Can only be sold in the trading system. It may be open after maturity, and then it can be redeemed with net value.

The transaction price of closed-end funds mainly depends on the relationship between supply and demand. Because the exchange is listed, the transaction price of closed-end fund is not necessarily equal to its net asset value, but determined by the balance of market trading power. When the market price of closed-end fund is higher than its net asset value, the market is called premium phenomenon; On the contrary, when the market price of closed-end fund is lower than its net asset value, the market is called discount phenomenon. The trading and calculation income of closed-end funds are calculated at the market price, and the unit net value is for reference only. Closed-end funds include closing price, volatility, discount rate and net value. Because closed-end funds are similar to stocks and can be listed and traded, there is a market price. The closing price of the day you see in the market is the market price of the day. The rise and fall indicates the change of market price on that day. Its unit net value is published once every Friday.

The two-level share of hierarchical structure better meets the needs of different investors: the priority share of agreed income is a safe haven for low-risk investors, and the highly leveraged enterprising share is a stage for high-risk investors to pursue profits. As far as investment varieties are concerned, closed-end graded funds cover not only stock targets, but also bond targets. Among them, bond grading funds are the main ones, which can be divided into regular open and closed according to the business model of preferred stocks. These two types of enterprising stocks are listed and traded, among which the regular opening of preferred shares is regular, with high certainty of agreed returns; Closed-end preferred shares are listed in a closed way, and the certainty of agreed income is poor.

In terms of short-term impact, as a listed product, its trading situation and short-term investor sentiment have obvious impact on short-term prices. If the transaction volume is too small, a small amount of transactions may lead to price fluctuations. If the proportion of institutional investors is too large, their selling behavior will drag down the irrational decline of prices. Emotionally speaking, the foundation will rise as the market price rises, and it will also fall when it falls. For example, at the end of the third quarter of last year, the radical share discount of graded bond funds rose sharply, which was mainly caused by market panic, especially the selling behavior of institutions. The price of funds with higher institutional holdings was significantly lower than the net value.