Flipping Indian Fund

I added to my position in Indian Fund (IFN) today. Sounds simple, right? Not so simple. Reality is, Indian Fund has an interesting strategy. Twice a year fund helps holders to make a little bit extra money. If fund trades at significant discount, it buys shares at net asset value, if fund trades at NAV or above, it sells shares at 95% of NAV. Currently, fund trades at discount over 12%. Fund is buying shares at tomorrow's NAV (there is a fee, of course, 2%, plus something your friendly broker takes). I decided to take the offer and put part of my position on sale. At the same time, I want to keep this position, so essentially I'm flipping shares, selling them at 2% discount to NAV and buying (today) at more than 12% discount. Easy money. The only problem, this time more than 30% of outstanding shares have been put for sale, and fund buys only about 12%. I don't know exactly how many of my shares will be bought, but it's OK. Fund made me a lot of money and increased position is worth it.

Disclosure: I am long IFN.

Additional disclosure: Positions can change any time.