Why do closed end mutual funds list at a price that is different from the total value of assets in the fund? - list of fund of funds
For open-end funds, the share * The total number of outstanding shares, the value of equity funds, private equity funds, but the relationship is intact. Basically, I invest a dollar in the closed-end funds, which entitles me to call a value of $ 1.10 to assets of the Fund. How is this possible?
Thursday, January 28, 2010
List Of Fund Of Funds Why Do Closed End Mutual Funds List At A Price That Is Different From The Total Value Of Assets In The Fund?
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4 comments:
You're right - it is only for closed-end fund is a situation that is perceived by traders closed-end fund - The fund may, with a premium or discount to the net value of the fund to trade as dealers, business or goodwill in relation his standard is based on this dispartity. For example, the fund usually trades at a premium of 5% and is now a discount of 5% discount is also low for the year - you buy the fund back to the normal premium.
Why? In contrast to an open capital funds that trade - which each day was closed at the net value of the fund and may increase, decrease in size based on the cash flows out. A closed-end fund is like a shop where they appear in an exchange for a specified number of shares outstanding - then the movement of prices as low as dealers] [events, based on the assessment of changes in asset value in the background .
You're right - it is only for closed-end fund is a situation that is perceived by traders closed-end fund - The fund may, with a premium or discount to the net value of the fund to trade as dealers, business or goodwill in relation his standard is based on this dispartity. For example, the fund usually trades at a premium of 5% and is now a discount of 5% discount is also low for the year - you buy the fund back to the normal premium.
Why? In contrast to an open capital funds that trade - which each day was closed at the net value of the fund and may increase, decrease in size based on the cash flows out. A closed-end fund is like a shop where they appear in an exchange for a specified number of shares outstanding - then the movement of prices as low as dealers] [events, based on the assessment of changes in asset value in the background .
Because in the end. That's what determined nearly a half-term, prices will be by supply and demand, the net asset value of a simple note, as there is no obligation for the manager to repurchase shares in assets. In addition, some closed-end funds are investing in assets with limited liquidity (in loans) for which no published prices, so that it at cost price.
All good wishes, it was a "premium" or "off" as expected.
In other companies as "goodwill".
Although past performance is not indicative of future performance, if a fund was successful and the influx of money, it is trading at a premium. The losers have outputs, and a discount on.
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