Unit net worth and accumulated net worth are two common concepts in investment funds. Every investor will pay attention to these two indicators when buying funds, because they are of great significance to measure the income and value of funds. This paper will analyze the meaning of unit net value and accumulated net value from the perspectives of fund definition, calculation method and application scope. First, let's look at what a fund is. Fund is a kind of financial product which gathers the funds of multiple investors. According to the established investment strategy, the fund company or fund manager effectively allocates and manages various assets such as stocks, bonds and futures, so as to spread investment risks and improve investment returns. The investors of the fund hand over their own funds to the fund company or fund manager for investment, and the profits and losses of the fund ultimately belong to the investors.
net asset value (nav) refers to the price of each net asset of a fund. The net unit value is calculated by dividing the total net assets of the fund by the total share of the fund. Net assets are the total assets of the fund MINUS liabilities, and the total share is the total issued share of the fund. The unit net value reflects the net asset value of each fund, and it is also the reference price when investors buy or redeem the fund.
CumulativeNetAssetValue refers to the sum of the accumulated unit net value since the establishment of the fund. The accumulated net value is calculated from the date of the establishment of the fund, once a day, and is constantly updated with the operation of the fund. Cumulative net value is a measure of the historical performance of the fund and an important reference for investors to evaluate the investment effect of the fund.
from the calculation method, both the unit net value and the accumulated net value are obtained by calculating the net assets of the fund. Net assets will change with the fund's investment operation and market changes. The calculation of daily net assets is based on today's asset value minus today's liabilities. This process needs to be the responsibility of the fund manager and open and transparent.
from the application point of view, both unit net worth and accumulated net worth are of great significance to investors. The unit net value can reflect the net asset value of the fund, and investors can decide the time to buy or redeem the fund according to the unit net value. When the unit net value rises, it means that the investment value of the fund increases and investors can get higher returns. On the contrary, the decline in unit net value means that the investment value of the fund declines, and investors may face losses. Net unit value is also the calculation basis of fund return.
the accumulated net value can reflect the historical performance of the fund. By observing the cumulative net value curve of the fund, investors can understand the investment income and volatility of the fund. A relatively stable cumulative net value curve may mean that the risk of the fund is low and it is suitable for conservative investors. The relatively volatile cumulative net value curve may represent a higher risk of the fund and is suitable for investors with strong risk tolerance.
In short, unit net worth and accumulated net worth are two important concepts in investment funds. The net unit value is the price of each net asset of the fund, which is used as a reference price for investors to buy or redeem the fund. Cumulative net value is the sum of accumulated unit net value since the establishment of the fund, which is used to evaluate the historical performance of the fund. Investors can make investment decisions by understanding and analyzing unit net worth and accumulated net worth, and choose appropriate funds according to their risk tolerance.