Discount Widening

Discount widening is a change in which a fund’s market price moves farther below its net asset value.

Why this matters to income investors

A larger discount can reduce shareholder value even if fund income is stable.

How to use discount widening in your research

Compare the cash distribution with the fund’s reported income, gains, and net asset value over several periods. Check the source and sustainability of the payment rather than relying on its quoted rate.

This material is general education and information, not individualized investment, tax, or legal advice.