In fund investment, the net value of the fund is the most important factor among all the elements of the fund, because the net value of the fund determines the profit and loss of investing in a fund, so how does the net value of the fund come from?

How did the net value of the fund come from?

The net value of the fund on that day is calculated by the fund company. Fund Net Value = Total Assets-Total Liabilities, Unit Fund Net Value = (Total Assets-Total Liabilities)/Total Fund Shares. Different funds have different requirements for the publication of unit net value, as follows:

Ordinary open-end funds need to calculate the unit net value every day because they have to purchase and redeem every trading day; Because closed-end funds are not allowed to be redeemed, the transaction price of closed-end funds is usually calculated according to the real-time market price, and it is not necessary to publish the net value frequently.

For closed-end funds, we can also use the relationship between their net worth and transaction price as the basis for trading. In short, the transaction price is too far from the net value to last too long, and there is room for operation at this time.