What is the discount rate for closed end funds? Is it better to buy a seal base with a high discount

The closed-end discount rate means that the promoter of ** limits the total amount of units issued when setting up, and after the total amount is raised, ** is declared established and closed, and no new investment is accepted for a certain period of time. The circulation of ** units adopts the method of listing on the ** exchange, and investors must buy and sell ** units in the future, and must conduct auction transactions in the secondary market through ** brokers.

The formula for calculating the discount rate.

Discount rate = (**Net Share - Market Price of Unit) **Net Value of Share 100% (1) According to this formula, it can be seen:

1) The discount rate is greater than 0 (i.e., the net value is greater than the market price);

2) The discount rate is less than 0 (i.e., the net value is less than the market price).

In addition to investment objectives and management levels, the discount rate is an important factor in evaluating closed-end**.

The formula for calculating the premium rate.

Premium rate = (unit market price - ** net value of shares) ** net value of shares 100% (2) Description: (1) When the market price of the unit is greater than the net value of ** shares, the premium rate is greater than zero, which is called premium;

2) When the market price of the unit is less than the net value of the ** share, the premium rate is less than zero, which is called the discount.

The discount rate of closed-end ** should be the discount rate of closed-end **, because closed-end ** has a market ** and net value, and if the general market ** is lower than the net value, it is called a discount, and the discount rate is: (net value - market**) net value * 100

Relatively speaking, it is good to have a high discount, but there is also the potential for value-added to see ** itself! Now the closed-end discounts of famous brands are relatively low, and some of them have even exceeded the net value, which is the result of market speculation, so you still have to be careful!

The discount rate of closed-end ** refers to the ratio of the difference between the net value of ** share and the market price of the unit of ** and the net value of ** share of closed **. Definition of Premium Rate The premium rate refers to the ratio of the difference between the market price of the unit and the net value of the **share and the net value of the **share.

Calculation formula Discount rate calculation formula Discount rate = (**Net value of shares - market price of units) **Net value of shares 100 % (1) According to this formula, it can be seen that: (1) the discount rate is greater than 0 (i.e., the net value is greater than the market price); 2) The discount rate is less than 0 (i.e., the net value is less than the market price).

Closed**.

It means that when the promoter of ** is established, the total amount of issuance of ** units is limited, and after the total amount is raised, ** is declared established and closed, and no new investment is accepted for a certain period of time. Base.

Closed** is usually traded at a discount of less than the net asset value**. ；What does the discount rate of that closed ** mean? The following is Bian Xiao's introduction.

Closed** transactions in the secondary market are lower than the actual network, it is referred to as a discount.

The formula for calculating the discount rate is the discount rate Liang Jin = (net profit per unit share - market per unit **) net profit per unit share.

According to the formula, the discount rate is a discount when it is 0 (i.e., the net profit is greater than the market**) and the discount rate is a premium when it is 0 (i.e., the net profit is less than the market**).

The discount rate is not only one of the characteristics of closed**, but also an important judgment when many value investors decide to invest.

The closed-end discount rate, also known as the dispersion rate, refers to the ratio of the difference to the actual net value when the transaction of the closed-end ** in the secondary market is lower than the actual net value, which is an indicator used to measure the degree of discount. Among them, closed-end refers to an investment that has been determined before the issuance, and the scale of the company is fixed after the completion of the issuance and within the specified period.

The formula for calculating the closed-end ** discount rate is as follows: closed-end ** discount rate = (secondary market**-**net share) **net share 100%. It is reflected as a discount when the closed-end ** discount rate is greater than zero, and when the closed-end ** discount rate is less than zero, it is reflected as a premium.

**The discount is equivalent to**, all because of different factors in the outside world that cause floating, so why is the closed** discounted? What is the main reason for this?

The phenomenon of closed-end discount is widespread, which is called the "mystery of closed-type" in modern finance. Financial economists believe that the main causes of closed-end discounts may be:

1) Costs, i.e., new investors demand additional discounts for the investment manager's low business ability, low ethical standards and high management fees;

2) potential tax liability, i.e., the net value includes a large amount of unpaid profits, and new investors who need to pay income tax on this part of the profits require additional ** discount compensation;

3) illiquidity, i.e., the portfolio is primarily made up of illiquid assets, so managers may not adequately account for the accrued low liquidity discount for these assets when calculating the net value;

4) Investor sentiment, i.e., when investors expect their closed-end portfolio to be riskier than the portfolio, they are willing to pay less than their net worth.

However, there are two points to be pointed out that the duration of China's closed ** is not more than 15 years, while the international closed ** is usually perpetual; China's closed-end ** investment target is to be listed on the secondary market**, while the international closed-end ** may invest in unlisted ** with poor liquidity.

It can be seen that the huge discount of China's closed ** is mainly determined by investor sentiment. The high discount rate caused by the blind abandonment of investors means that China's closed ** hides a large investment value.