Is the fund valuation accurate?
Fund valuation is not necessarily accurate, that is to say, it is biased to regard fund valuation as the only standard of fund trading. The fund valuation is calculated according to the data published in the quarterly report, which has a certain lag. If the fund manager frequently changes positions, it is not accurate, and it is not accurate to change positions. And other uncontrollable factors will also affect the results of fund valuation to a certain extent. Large redemption and new income are also factors that affect the accuracy of valuation.
What investors need to understand is that, in fact, valuation represents past data, but investors invest in the future of assets and cannot make investment decisions unilaterally based on valuation. Fund valuation is a process of calculating and evaluating the value of fund assets and liabilities according to fair prices, and determining the net asset value and net fund share value. Therefore, it is biased to calculate future income only by past income. And the fund valuation is based on the result of data estimation. Different platforms have their own valuation methods, but the overall difference is not big.