1. Trading time

First of all, we need to understand what is called "T day". T day refers to the trading day, that is, the normal opening trading day of the Shanghai Stock Exchange and Shenzhen Stock Exchange, weekends and holidays do not belong to T day. T+n day refers to the nth working day after T day (excluding T day). The T day is bounded by the closing time of the stock market, which is 15:00. Every day's subscription and redemption must be operated before 15:00 in the afternoon of that day. After 15:00, the application will be made on the next trading day. Fund transactions are generally applied for on T day and confirmed on T+1. QDII funds (i.e. funds that invest in overseas markets) are confirmed on T+2 due to the time difference between the opening times of global exchanges.

If you purchase or redeem a fund on a non-trading day, such as a weekend, it will be postponed to the trading day. For example, if you purchase or redeem a fund after 15:00 on Friday afternoon, it will actually be counted as a transaction application for the next trading day, that is, next Monday. It cannot be confirmed until the next Tuesday, and the profit and loss cannot be checked until the next Wednesday. . If the subscription is made on the last trading day before the long holiday, whether the transaction is before 15:00 or after 15:00, the fund company will only confirm the subscription after the long holiday, and the profit and loss cannot be checked during the confirmation period.

2. "Unknown Price" Trading Principle

The fund's subscription and redemption adopt the "unknown price" principle, that is, the subscription and redemption are based on the net value of the fund after the market close on day T. The net value of the fund is generally calculated on the basis of the fund shares purchased or the amount obtained from the sale. The net value of the fund is generally announced on the evening of T day or the next morning. Therefore, when investors buy and sell funds during the trading hours of the day, they only know the previous day's value. The net value of the fund does not know the exact price of the day's transaction.

Funds are different from stocks. Transactions at any time point before 15:00 on the trading day will be calculated based on the net value after the close of the day. It does not matter whether it is bought in the morning or afternoon, or whether it is bought on the same day. If you buy it at a high point, you should buy it at the low point of the day. When you buy a fund, the net value you see is the net value of the previous trading day. The net value of the fund you purchased will not be known until the net value of the fund is updated after the market closes. When you buy the fund, it is not actually the net value. Know at what price you bought it.

3. The difference between fund net value and valuation

Fund net value and valuation are not the same thing. Fund net value is the actual price calculated by the fund company. There will only be one price for the fund every day. Net value, while fund valuation is a price estimated based on relevant data. Because the stock price changes in real time, the valuation also changes. The fund has multiple valuations at different points in time. Many people will encounter a problem when investing in funds, that is, they see that the valuation of the fund has increased very well, but when the net value of the fund is announced in the evening, they find that it is far from the expected increase. The main reason for the deviation is that one is based on actual The positions and operations are calculated, and one is calculated based on past data, so there are differences.

In general, valuation and net worth are the difference between expectations and reality. Valuation can only be used as an investment reference and must not be used as net worth. However, we can learn about the actions of the fund manager from the comparison of fund valuation and fund net value. For example, there is a large difference between fund valuation and fund net value, which means that the fund manager is likely to adjust positions and exchange shares. Generally, the difference between the net value and valuation of actively managed equity funds will be larger because the positions they display are from the previous quarter; the valuation and net value of passive funds or index funds change less.

4. The difference between cash dividends and dividend reinvestment

Except for monetary funds, which reinvest dividends and cannot modify them, other funds default to cash dividends, but the dividend method can be modified. Cash dividends Distributing dividends in the form of cash is equivalent to selling without redemption fees. Reinvesting dividends means distributing dividends in the form of fund shares. Repurchasing reinvested shares does not require subscription fees. If you are optimistic about the future of this fund, trend, then choose dividends and then invest.