The main difference between net worth financial products and annual income financial products lies in the different calculation methods of income.
Annual income financial products mainly express the expected rate of return in terms of expected rate of return, and there is a certain degree of uncertainty in forecasts and averages; net worth financial products are calculated based on actual income, which is intuitive and clear, and excludes forecasts, averages, errors and errors.
The annualized rate of return is calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into an annual rate of return.
This is a theoretical rate of return, not a rate of return that is actually achieved.
The net unit value is the value of each stock fund on that day.
It is the day's value of each stock fund obtained by dividing the fund's net assets by the fund's total shares.
A fund's net unit value is actually the price of each fund.
The calculation formula is: total net assets of the fund/total number of fund shares.
Assuming that the total net assets of the fund are 1.5 billion and the total current fund shares are 1 billion, the net value of each unit is calculated to be 1.5 yuan.
The net unit value of a fund is also the value of the net assets of each unit of the fund.
For this net worth, we do not believe that its level is the main basis for fund selection.
The size of a fund's net worth is not more important than its future growth.
After all, growth is the key to judging the value of an investment.
The main reason why its level cannot be a key criterion is that it is often affected by various factors, not just the management ability of the fund manager.
If a fund has been established for a long time and grows rapidly, its net worth will naturally be higher.
On the contrary, if a fund is short-term and does not enter the market at a better time, its value will be lower.
For this net worth, we should not consider its level to be the main basis for fund selection.
The size of a fund's net worth is not more important than its future growth.
After all, growth is the key to judging the value of an investment.
The main reason why its level cannot be a key criterion is that it is often affected by various factors, not just the management ability of the fund manager.
If a fund has been established for a long time and grows rapidly, its net worth will naturally be higher.
On the contrary, if a fund is short-term and does not enter the market at a better time, its value will be lower.