When the market supply is less than the demand, the buying and selling price of fund shares may be higher than the net asset value of each fund share, and then the fund assets owned by investors will increase, that is, a premium will be generated; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund unit, which means discount.
At present, the discount rate of closed-end funds is still high, mostly between 20% and 40%, among which the discount rate of small and medium-sized funds with short term is low. It is certainly better to buy the same fund when the discount rate is high; However, the choice of funds should not only look at the discount rate, but also choose some small and medium-sized funds with moderate discount rate and short term.
Extended data:
The main differences are as follows:
(1) The variability of fund size is different. Closed-end funds have a clear duration (not less than 5 years in China), during which the issued fund shares cannot be redeemed. Although this kind of fund can be raised under special circumstances, it must meet strict legal conditions. So in general, the size of the fund is fixed.
However, the fund shares issued by open-end funds can be redeemed, and investors can also buy fund shares at will during the duration of the fund, which leads to the constant change of the total amount of funds every day. In other words, it is always in an "open" state. This is the fundamental difference between closed-end funds and open-end funds.
(2) There are different ways to buy and sell fund shares. When a closed-end fund is initiated, investors can subscribe to the fund management company or sales organization; When closed-end funds are listed and traded, investors can entrust brokers to buy and sell at market prices on the stock exchange. When investors invest in open-end funds, they can purchase or redeem them from fund management companies or sales organizations at any time.
Baidu encyclopedia-closed-end fund