Is it better to have a negative or positive discount rate?

Specifically, it depends on how investors operate, generally it is positive, and the discount is negative, which means that the market is lower than the net market value, and investors can apply for redemption in the secondary market to earn a risk-free spread. If the discount is positive, it means that the market is higher than the net market value, and investors can subscribe and then sell in the secondary market to earn a risk-free spread. To put it simply, the on-exchange is something that can be bought and sold directly in the secondary market, and the discount rate of the on-exchange is the discount of the transaction on the floor relative to the net value.

** with a high discount on the market is generally closed**, or the closed period is very long**, investors need to be cautious when investing. As trades** are affected by market buying and selling, they do not always coincide with equity. Extended Materials.

1. **Classification: 1**type**, that is, the vast majority of funds are invested in **market**; 2.

Bond type**, that is, the main funds used for investment and bond market **; 3.Hybrid**, hybrid as the name suggests is mixed together, what to mix together? The main mixture is ** and bonds, that is, part of the investment in **, part of the investment in bonds, this mix is also proportional, can be adjusted, of course, according to the requirements of the regulations, the purchase of other financial targets; 4.

Currency type** is mainly used to invest in the currency market, and the main characteristics are low risk and low return. Two: Warren Buffett's ten-year covenant:

In 2008, Warren Buffett made a bet that the manager would choose 5 as a portfolio with an investment period of 10 years, comparing the S&P 500 index to see whether the index had more returns or the portfolio built by the manager had more returns. In the end, only one ** manager came out to participate in the bet, 10 years have passed, and the victory and defeat have been known, and the S&P 500 index selected by Buffett ** has a cumulative return of up to 10 years. **The 5 hedges selected by the manager** have the highest returns, the lowest, and the average yield is only, which is relatively very poor.

In the United States, the return rate of investment index ** will be better than active ** in the long run, so whether this law applies in China will be analyzed in detail later.

Positive and negative discount rates have their own benefits. If the discount is negative, the market is lower than the market equity. At this time, investors can be in the secondary market****, and then apply for redemption, which can earn a risk-free spread.

If the discount is positive, it means that the market is higher than the market equity. At this time, investors can subscribe for ** and then sell it in the secondary market to earn a risk-free spread.

Here's how to choose:

1. Compare between the same type**. When many people look at the top rankings, they only look at the yield and want to choose one with a high yield. In fact, different types of ** present different levels of return and risk due to different investment varieties and investment scopes.

Generally speaking, the higher the proportion, the higher the risk, the largest return in the market, but the loss may also be the most severe, followed by hybrid, bond, and the safest is the currency, but the return is also the lowest. It is recommended that investors should choose the right type according to their own risk tolerance and financial goals, and only the comparison of similar performance is meaningful. If you compare **type** with bond**, it is like a football team where the performance of both forwards and defenders is measured by the number of goals, which is obviously inappropriate.

2. Combine the long and short term. When many financial fans go to the bank, the staff of the bank will say how much income a certain ** has achieved in half a year, but in fact, they just choose a time with better income to sell. Generally speaking, the rate of return over the last 6 months is short-term and it is difficult to infer the capabilities of the managerial team, but it can be used to observe recent changes.

Generally, the investment is medium and long-term investment, and it is recommended that the quality of the performance should also be observed and analyzed in a long period of time, such as the rate of return of one year and two years, and the short-term performance should not be used as the criterion for selection.

3. Compare with performance benchmarks. To look at the performance of the first generation, we should not only look at the growth rate of net worth, but also compare the relationship between its performance and the benchmark rate of return. The benchmark for each type of performance is different.

A negative discount rate indicates that the market price of the unit ** is higher than the net value of the unit**.