It depends on how investors operate. Generally speaking, a positive discount or a negative discount 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 apply for redemption to earn risk-free spreads. If the discount is positive, it means that the market price of the fund is higher than the net value. Investors can buy the fund and then sell it in the secondary market to earn a risk-free price difference. Simply put, the floor fund is a fund that can be directly traded in the secondary market, and the discount rate of the floor fund refers to the discount of the transaction price of the floor fund relative to the net value. Funds with high discount in the market are generally closed-end funds or funds with long closed-end period, so investors need to be cautious when investing. Because the transaction price will be affected by the market buying and selling behavior, it is not always consistent with the net value. 1. Fund classification: 1. Equity funds are funds in which most of the funds are invested in the stock market; 2. Bond funds are funds whose main funds are used for investment and bond market; 3. Hybrid funds, as the name implies, are mixed together. What are they mixed together? There are mainly stocks and bonds, that is, some invest in stocks and some invest in bonds. This mixture is also proportional and can be adjusted. Of course, you can also purchase other financial targets according to the requirements of the fund. 4. The money fund is mainly used to invest in the money market, and its main characteristics are low risk and low return. Two: Buffett's ten-year contract: In 2008, Buffett made a bet that the fund manager would choose five funds as the portfolio, and the investment period was 10 year. Compared with the Standard & Poor's 500 index fund, let's see whether the index fund has higher returns or the portfolio built by the fund manager has higher returns. In the end, only one fund manager came out to participate in the bet. 10 years later, the result is known. The cumulative return of the S&P 500 index fund selected by Buffett in 10 is 125.8%. The returns of the five hedge funds selected by the fund manager are 87.7%, the lowest is only 2.8%, and the average return is only 36.3%, which is relatively poor. In the United States, the yield of investment index funds will be better than that of active funds in the long run, so whether this rule is applicable in China will be analyzed in detail later.