Closed-end funds are a major category of funds. Unlike open-end funds, closed-end funds have a strict closure period and cannot be redeemed before the closure period expires. In the process of investing in closed-end funds, we find that closed-end funds are discounted, that is, the market price is low. Then, let's briefly understand the reasons why closed-end funds are discounted today.

What is the discount phenomenon of closed-end funds?

Closed-end funds have market value and net value. When the market price is lower than the net value, it is called discount. Discount rate is an index to measure the discount degree of closed-end funds.

Generally speaking, discount rate = (net value-market price)/net value * 100%.

Then, why is there a phenomenon of closed-end fund discount?

In fact, the discount of closed-end funds is a common phenomenon in the international market, and there are countless studies on the discount of closed-end funds. Among them, the main agreed views are as follows.

1, the mood of traders, that is, the influence of investors' investment attitude.

Irrational people's expectation of future expected income is easily influenced by unpredictable changes; When they are pessimistic about the expected return, the relationship between supply and demand changes, and the transaction price of the fund will fall, resulting in a large discount relative to the net asset value of the fund.

2. The risk of portfolio held by closed-end funds is greater than that of open-end funds. Under certain conditions or circumstances, closed-end funds will have impact costs in the process of asset changes, which will lead to the discount of closed-end funds.

Of course, in addition to the above main reasons, there may be other influencing factors, and these mysteries need us to understand slowly.

The above is the mystery of closed-end fund discount, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.