Closed-end funds usually trade at a price lower than the net asset value, that is, discount trading. Nbsp What does the discount rate of that closed-end fund mean? The following is Bian Xiao's introduction.

Closed-end funds are called discounts when the transaction price in the secondary market is lower than the actual network.

The calculation formula of discount rate of closed-end funds is discount rate = (net profit per unit share-market price per unit)/net profit per unit share.

According to this formula, it is a discount when the discount rate is 0 (that is, the net profit is greater than the market price) and a premium when the discount rate is 0 (that is, the net profit is less than the market price).

Discount rate is not only one of the characteristics of closed-end funds, but also an important judgment when many value investors decide to invest.