Is it better to buy a closed end fund at a high discount or a low discount

**Discount Schedule.

** Name Maturity Date Earnings Dividends Net Value Current Price Discount Rate.

500001 Kim Tae.

500002 Taihe.

500003 Anxin.

500005 Hansheng.

500006 Yuyang.

500008 Schmidt.

500009 Teluk Intan Orientation.

500011 Jin Xin.

500015 Hanxing.

500018 Xinghe.

500038 Tong Qian.

500056 Corey.

500058 Yinfeng.

184688 Kaiyuan.

184689 Inclusive.

184690 Tongyi.

184691 Jinghong.

184692 Yulon.

184693 Pufeng.

184698 Tian Yuan.

184699 Tongsheng.

184701 King Fook.

184703 Jinsheng.

184705 Yuze.

184721 Toyowa.

184722 Jiujia.

Relatively low risk than **, but there are also risks, low fees, the highest, **suitable for long-term holding.

I registered with the mentality of trying, it's boring to watch**, when the game is played, it's best to give money, and there is no loss if you don't give money, about 300-600 points per hour, 10,000 points for $50, $50 payment, $50 can enter the United States casino ** to gamble, but also to enter other **shopping, is the United States ** credible? Good luck to all.

First, the advantages of closed **.

I think the advantages of this kind of ** can be summarized simply: fixed scale, long closed period, convenient for better investment layout, better return expectations.

There are two sides to everything, and the same is true for closed styles. The investment period is as short as one year and as long as 10 years, although it loses the flexibility of funds, but it also relatively locks in the investment layout. Managers don't have to worry about investors redeeming at any time, and can safely choose some better blue chips and the like, and expect returns based on the stable and better performance of the companies corresponding to blue chips.

If the market is good and works well, it is still likely to get a good net worth growth. Therefore, in general, its defense capabilities are strong.

Another advantage is that the subscription fee is lower. In the market, the fee is only three thousandths, while the open market is higher, usually as high.

It is not difficult to see that this kind of ** is suitable for investors who have idle funds that are not used in the short term, and if they are usually too lazy to take care of funds, they can allocate some appropriately.

Second, the disadvantages of closed **.

Compared with the open **, the disadvantages of the sealing base are also more obvious.

1. The term is too long.

In my opinion, for young people, there are too many places to use money, buying a house, buying a car, and spending large sums of money are common, and a sum of money is closed for several years, and there will definitely be limitations. I once bought a 3-year treasury bond, and it matured in more than half a year, but I had to redeem it early with the money to buy the house, and the yield was definitely lower than expected.

For closed-end **, if you want to redeem in advance, you can only trade and transfer at the market price like in the **market, although there will be a net value reference, but it will be discounted.

2. The transaction is not flexible enough.

Open** can initiate redemptions almost at any time, and only need to pay a certain redemption fee. The closed-end type can only be redeemed at maturity or transferred at a discount in advance, and can be traded in the market. However, compared to open-ended**, its trading is not flexible enough.

3. Poor motivation for ** managers.

As mentioned above, because of the fixed issuance scale and long term, the manager does not have to worry about the investor redeeming at any time, and the layout can be laid out with peace of mind, but this may have a worse incentive for the manager. The open-ended, the manager should set aside a certain amount of funds to deal with the redemption of investors at any time, and the utilization rate of funds is poor, so he can only use limited funds to obtain higher returns as much as possible, so the manager's initiative is better and there will usually be better performance returns.

The advantages and disadvantages of closed ** are as follows:

First, the advantages of closed **:

1. Transaction cost advantage, closed-end ** only brokerage commission, no subscription and redemption fee, no stamp duty, and the general brokerage commission is much lower than the subscription and redemption fee;

2. The advantage of funds to the account, closed-end ** on-site trading, the funds sold on the same day can be used on the same day, and can be withdrawn on T+1 day;

3. Closed-end **according to the real-time transaction in the market, in the case of **skyrocketing or **, it can be fast-in and fast-out;

4. Discount advantage, closed-end ** will generally have a discount, mainly because some investors are in urgent need of funds or can't endure the closure period of several years, and want to exit as soon as possible, so they can only choose to sell cheaply in the secondary market.

Second, the disadvantages of closed **

1. Lack of liquidity, once you invest in closed-end **, you can't redeem it, and you can only sell it at a discount in the secondary market, which is not cost-effective;

2. After the fundraising is completed, the scale and management fee will be fixed, and there is a lack of incentives for managers.

Extended Materials:**.

1. **Regular investment.

**Regular investment is the abbreviation of regular fixed investment**, which refers to investing a fixed amount (such as 500 yuan) into a designated open** at a fixed time (such as the 8th of each month), similar to the bank's lump sum deposit and withdrawal method. What people usually refer to as ** mainly refers to ** investment **.

2. Automatic Investment Plan (AIP) is known as lazy financial management, and its value is due to a saying circulating on Wall Street: "It is more difficult to accurately step on the market than to catch a flying knife in the air." "If you adopt the batch ** method, you will overcome the defects of only choosing one point in time to buy and sell, and you can balance the cost and make yourself invincible in the investment, that is, the regular investment method.

3. Generally speaking, there are two types of investment methods, namely single investment and regular quota. Due to the low starting point and simple method of "fixed investment", it is also known as "small investment plan" or "lazy financial management". Compared with regular investment, the one-time investment return may be high, but the risk is also great.

Due to the avoidance of the influence of investors' subjective judgment on the timing of entering the market, the risk of regular investment is significantly reduced compared with **investment or **single investment. **Regular fixed investment has the characteristics of similar to long-term savings, which can accumulate a lot, spread the investment cost evenly, and reduce the overall risk. It has the function of automatically increasing the weight on dips and reducing the size on highs, no matter how the market changes, you can always get a relatively low average cost, so regular fixed investment can smooth out the peaks and troughs of net worth, and eliminate the volatility of the market.

As long as there is an overall growth in the selection, investors will get a relatively average return, and they no longer have to worry about the timing of entering the market.

Closed** and open** have their own advantages.

Closed-end is good and can be traded in the secondary market like **. The closed-end ** has a discount rate, which is its valuation advantage, and the closed-end ** expires to become open-ended**. With the expectation of the closure to be opened, the discount rate began to shrink, **significantly**.

Open-ended refers to a mode of operation in which the total size of the shares is not fixed when the promoter is established, and the shares can be redeemed to the investors at any time according to the needs of investors, and the shares issued outside can be redeemed at the request of investors. Investors can either purchase through the sales agency to increase the assets and scale accordingly, or sell the shares they hold to the company and recover the cash to reduce the assets and scale accordingly. Open has become the mainstream of the international market, the United States, the United Kingdom, Hong Kong and Taiwan's market is more than 90% open.

Compared with closed-ended, open-ended has great advantages in terms of incentive and restraint mechanism, liquidity, transparency and investment convenience.

**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.

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.

Can you see the benefits of closing**.

Closed**. The level of earnings. Depends on the market environment. and the level of the manager. If you are in a bull market, the returns are also very high.