Suppose the net asset value of a closed-end fund is 6.5438+million yuan, but the market price of the fund is only 8 million yuan due to the poor expectation of the fund and the lack of interest of investors. In this case, the discount rate of the fund is 20% (1000-800)/1000).
This discount phenomenon may be an opportunity for investors, because they can buy fund shares at a price lower than the net asset value. When the discount phenomenon of the fund gradually disappears or the market demand for the fund increases, the market price of the fund may return to the net asset value or even be higher than the net asset value, and investors can gain income by selling the fund shares.
In short, the large discount phenomenon of closed-end funds means that the market's expectations of funds are not good, resulting in its market price being lower than the net asset value. Investors can make profits by seizing this opportunity.