When listed on the exchange, the transaction price of the base set is not necessarily equal to its net asset value, but is determined by the balance of market buying and selling power. When the market price of basic coverage is higher than its net asset value, the market calls it premium; On the contrary, it is a discount. Once the closed fund becomes open or the closed fund expires, the discount of the fund disappears, and the price difference can be earned by "marking the price" with the unit net value. So you can find that the discount of closed-end funds that are about to expire is much smaller than that of funds that are far from expired. Most of the 30% discount occurs when the market is poor. Recently, the market is better, so many discounts have become smaller. Some will have a premium when the market is optimistic before the expiration. Of course, in the bull market, in addition to investors optimistic about the market outlook, there are some factors that believe in speculation. There is also an innovative closed-end fund, such as Fu Rui Enterprising Fund, which often has a premium because of its leverage. These are the results of the power of buyers and sellers in the market. The phenomenon of back cover discount is common. The main reasons are: (1) agency cost, that is, new investors demand extra price discount compensation for investment managers' low business ability, low moral standards and high management costs; (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 back cover of their investment is more risky than the portfolio of the fund, the price they are willing to pay will be lower than the net value of the fund.

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