Refers to the fund sponsors in the establishment of the fund, limited the total issuance of fund units. After raising the total amount, the fund will be declared closed and will not accept new investments for a certain period of time. The circulation of fund shares is listed on the stock exchange, and investors must bid on the secondary market through securities brokers in the future.

When the transaction price of closed-end funds in the secondary market is lower than the actual net value, this situation is called "discount". Discount rate = (unit net share-unit market price)/unit net share. According to this formula, when the discount rate is greater than 0 (that is, the net value is greater than the market price), it is a discount, and when the discount rate is less than 0 (that is, the net value is less than the market price), it is a premium. In addition to investment objectives and management level, discount rate is an important factor in evaluating closed-end funds. Foreign methods to solve the large discount of closed-end funds include: closing to opening, fund liquidation in advance, fund tender offer, fund share repurchase, fund management and distribution, etc.

For example, the market price of a closed-end fund in 0.8 yuan is 1.20 yuan, so we say its discount rate is (0.8-1.20)/1.20 =-33.33%.