Fund premium means that when the fund is issued, the demand is greater than the supply, and the issue price of the fund is greater than the value of the fund itself. The transaction price of the secondary market trading fund is not equal to the net value of the fund. When the transaction price is higher than the net value of the fund, it is a premium transaction. On the contrary, it is a discount transaction. Fund premium is generally traded in the secondary market (stock market), that is, the transaction price is higher than the net value of the fund, and vice versa. Traditional closed-end funds are mostly discounted, and innovative closed-end funds often have a premium when they go public, mainly because of the scarcity of products, which leads investors to pursue products.

Extended data:

Fund premium:

1, LOF funds have transactions on and off the market, and they have stopped buying or stopped buying. Everyone has crowded into the market to buy them, such as the recent oil fund.

2. The average daily trading volume of on-site funds is too small, for example, only a few hundred thousand. If you buy in large quantities, the price will increase, resulting in a premium.