When choosing a fund to invest, the net value of the fund is often the key factor that investors need to consider. Under normal circumstances, the net fund value is often announced after the close, so many times the net fund value seen during the day is the net fund value of the previous trading day. So does the net value of the fund mean income? Let's get to know each other.

Does the net fund value mean income?

The net value of the fund does not represent the fund income, but only the fund price, and does not represent the income generated by investors' funds. The income of the fund is determined according to the rise and fall of the net value of the fund. The net value of the fund has increased relative to the net value of the fund held by investors, so in this case, investors can enjoy the benefits of the fund. Without considering the transaction cost of the fund, the increase in the net value of the fund is the income of the investment fund.

Of course, if in the process of investing in a fund, the net value of the fund does not rise, but falls, then the fund is losing money. The essence of fund investment is similar to stock investment, which earns the difference through the rise and fall of fund net value.

In the process of fund investment, the rise and fall of fund net value is determined by the target of investors. Equity funds invest in a basket of stocks. When the stock goes up, the net value of the fund goes up. If the stocks invested fall, the net value of the fund will fall. In addition to the investment target will affect the rise and fall of the fund, the operation of the fund manager will also affect the net value of the fund.

In short, the net fund value is not income, and the income is determined according to the bill of the net fund value. As long as the net value of the fund is higher than the net value of the fund when investors buy it, it means that it is profitable.