The net value of reinstatement is the calculation of unit net value, that is, the unit net value plus dividend reinvestment is calculated together. The net value of reinstatement means that investors will continue to use these funds to increase their investment after receiving dividends. Only by comprehensively considering the factors of dividends can the net value of fund shares be re-weighted. The net value of reinstatement can better reflect the income of the fund, so evaluation institutions are also used to evaluating the fund with the net value of reinstatement.

What's the difference between cumulative net worth and unit net worth?

1. The unit net value refers to the unit value of the fund on a certain day, and the accumulated net value of the fund is the superposition of the daily increase and decrease since the establishment of the fund.

2. Net fund unit value = (total fund assets-fund liabilities)/total fund shares; Accumulated unit net value = unit net value+accumulated dividend amount since its establishment.

3. The unit net value reflects the price of the fund on the current day, and short-term investors can use it to predict the recent trend, but the accumulated net value is the superposition of daily ups and downs since the establishment of the fund, which can be used as an important reference for long-term investors to predict the fund trend.