The second question should refer to the accumulated net value of the fund. It should be 4.5 yuan now. If it is closed, it should be converted into an open-end fund share of one yuan each.
The following is an article about this, let me show it to you.
Reprinted from "China Fund Forum"
How to understand and check the market price of closed-end funds
Closed-end funds have closing price, price fluctuation, 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 fluctuation indicates the fluctuation range of the market price on that day. Its unit net value is announced every Friday.
If investors intend to inquire about their own closed-end funds, they can download a securities quotation software online, open it after installation, and directly input the fund code to inquire about the fund. For example, if the fund Yuze directly enters the code 184705, it can be seen that its current price is 1.770 yuan (March 15, 2007), with an increase of 2.55% on that day. As of March 9, 2007, its unit net value was 2.3 189 yuan, and its accumulated net value was 2.6589 yuan. Net worth is the value of the total assets of the fund minus liabilities. The reason why there are two net worth indicators is because the fund pays dividends, and the unit net worth does not consider the dividend factor, but the accumulated net worth plus the accumulated dividend.
We buy and sell closed-end funds, and calculate the income at the market price. The unit net value is for reference only.
What are the discounts and premiums of closed-end funds?
Because listed on the exchange, the transaction price of closed-end funds is not necessarily equal to their net asset value, but is determined by the balance of market buying and selling forces. When the market price of closed-end fund is higher than its net asset value, the market calls it premium phenomenon; Conversely, when the market price of a closed-end fund is lower than its net asset value, the market calls it a discount phenomenon.
What is the discount rate of closed-end funds?
Discount rate is a unique index of closed-end funds. Comparing the market price and net value of closed-end funds, the public can find that the market price is always lower than the net value. This is because the market price of the fund is "discounted" on the basis of the unit net value, and the amount of "discounted" is displayed in the market table at a discount rate.
Discount rate = 1- the ratio of market value to fund net value. The greater the discount rate, the greater the discount of the fund. At present, under the market opportunity that closed-end funds turn into open-end funds, whether the "discount" of closed-end funds can become a topic of concern to investors. Because the greater the discount rate, once the closed-end fund or closed-end fund expires, the discount of the fund disappears, and investors can earn the difference by "marking the price" with the unit net value.
Why do closed-end funds discount?
From a global perspective, the premium phenomenon of closed-end funds is relatively rare, and its discount phenomenon is widespread, which is called "the mystery of closed-end funds" by modern finance. Financial economists believe that the main reasons for the discount of closed-end funds may be:
(1) Agency cost, that is, new investors demand additional price discounts to compensate investment managers for their low business ability, low moral standards and high management fees;
(2) Potential tax burden, that is, the net value of the fund contains a large amount of undistributed profits, and new investors who need to pay income tax on these profits demand additional price discount compensation;
(3) The assets of the fund are illiquid, that is, the investment portfolio of the fund is mainly composed of illiquid assets, so the manager may not fully consider the accrued illiquid discount of these assets when calculating the net value of the fund;
(4) Investor sentiment, that is, when investors expect that the closed-end fund they invest in is more risky than the fund's portfolio, the price they are willing to pay will be lower than the fund's net value.
However, there are two points to be pointed out: the duration of closed-end funds in China does not exceed 15 years, while closed-end funds in the world are usually perpetual; The investment target of closed-end funds in China is listed securities in the secondary market, while closed-end funds in the world may invest in unlisted securities with poor liquidity. It can be seen that the huge discount of closed-end funds in China is mainly determined by investor sentiment. The high discount rate caused by investors' blind abandonment means that China's closed-end funds hide huge investment value.
How should investors profit from the high discount of closed-end funds?
Because the duration of closed-end funds in China is not long, and according to the current actual operation, they will all be converted into open-end funds at the end of the closed-end period, so the discount of funds will inevitably disappear in the form of value regression at the end of the duration or when it is closed and open. If investors can buy and hold the maturity, closed-end funds with deep discount can not only provide protection equivalent to discount when the market falls, but also provide additional income equivalent to discount when the market rises.
As for investment strategy, whether and how an investor invests in closed-end funds depends not only on his investment period, capital utilization, risk tolerance and other constraints, but also on his expectation of fund market return. If investors don't think that the foundation is closed in advance, they can spread the funds among funds with different maturities according to the investment method of fixed-income securities under the premise of determining the minimum implied annual rate of return. On the other hand, if investors think that closed-end funds may be converted into open-end funds in advance, they should concentrate their funds on the funds with the highest discount rate to obtain the maximum price return rate.
Therefore, other factors being equal, rational investors should buy closed-end funds with obvious discounts instead of open-end funds or collective financial plans.
How to buy closed-end funds
Since the closed-end fund cannot be redeemed after its establishment, investors can only buy and sell shares of securities companies through the exchange platform after the establishment of the closed-end fund, except the exchange or the designated unit at the time of its establishment.
As closed-end funds are the trading varieties of exchanges, investors can buy closed-end funds as easily as buying stocks as long as they have securities accounts.
For citizens who do not have a shareholder account in a securities company, they can buy and sell closed-end funds as long as they bring their ID cards to any securities company to open a shareholder account, then open a capital account, and the deposits they receive (or deposit them in the bank after the bank handles the silver securities business).
How is the net value of closed-end funds calculated and published?
A: According to the relevant regulations of China Securities Regulatory Commission, closed-end funds must value their assets at market prices every trading day. The following are the main principles for calculating the net value of closed-end funds:
(1) Any securities listed and circulated shall be valued at the average market price listed on the stock exchange on the valuation date; If there is no transaction on the valuation date, it shall be valued according to the market price of the latest trading day.
(2) The rights issue and the issuance of new shares shall be valued according to the market price of the same stock listed on the stock exchange on the valuation date.
(3) The initial public offering of shares is priced at cost.
(4) Bonds that are not traded at the net price in the stock exchange market are valued at the net price after deducting the interest receivable from the closing price of the bonds on the valuation date; If there is no transaction on the valuation date, the net price shall be calculated according to the closing price of the bond in the latest trading day.
(5) If there is conclusive evidence that the above valuation method cannot objectively reflect the fair value of securities, the fund management company shall, after consulting with the fund custodian according to the specific circumstances, make the valuation at the price that best reflects the fair value.
Although every trading day needs to be valued, at present, closed-end funds only need to publish their unit net value once a week, so they generally publish their unit net value every Friday.
Closed-end fund transaction rate
The main charging items and charging proportion in closed-end fund transactions: the transaction commission is 0.25% of the transaction amount, the transfer registration fee of Shanghai Stock Exchange is 0.05%, and the service fee of Shenzhen Stock Exchange roster is 0.025%. When paying dividends: you need to pay a dividend handling fee of 0.3% of the distribution amount to the registered company.