We say that the first problem that a small white investor will encounter when buying a fund is to look at the net value of the fund. When he first faced the net value of the fund, he might have a question, that is, why is the price of a fund 80 cents and 5 yuan? The lower the fund price, does it mean that the cheaper it is, the greater the room for making money in the future?

In fact, the fund has three prices, unit net value, cumulative net value and reinstatement net value.

The net unit value represents the price of the fund on that day. This price will be updated once a day, and only one price will be displayed every day. The cumulative net value is based on the unit net value, plus cash dividends, and the weighted net value is based on the unit net value and cash dividends.

Therefore, if a fund can pay dividends regularly and invest the dividends in the fund at the same time, its reinstatement price will definitely continue to be higher than other prices of the fund in the long run.

The cumulative rate of return we see in the fund software, or the rise and fall of the fund, is calculated by the net value of reinstatement. Therefore, when buying a fund, we should pay more attention to the fund's rate of return, that is, only pay attention to the fund's rate of return, not too much attention to the fund's net value. The price of the fund cannot represent the investment cost performance of the fund.

Secondly, we can't take the net value of the fund as the basis for buying and selling investments, because the fund with high net value also represents the fund manager's ability to make money continuously. Because there is no upper limit on the price of the fund, except dividends, as long as the fund keeps making money, its net value, that is, the price, will keep rising.