For net value financial products, the historical performance of the product is reflected by the net value of the unit. Investors may make calculations based on the current net value of the unit when subscribing and redeeming the product.

The net value of the unit is constantly fluctuating, so is the larger the net value of the unit, the better?

Let’s find out together with you below.

1. The net value of the same fund determines the number of fund shares that can be purchased with the same amount.

For the same fund, the greater the net value of the unit, the fewer shares will be purchased. Generally, it is not recommended to buy when the net value of the fund rises sharply.

On the contrary, the lower the net value of the fund, the more shares you buy. When the net value of the fund rises in the future, the profit will be relatively greater.

Therefore, when investing in funds, there is a saying that when it falls, buy small and buy big when it falls. This is the reason.

For example: Investor A purchased a bond fund worth RMB 10,000 in January. The net unit value is the share of the fund purchased without considering the subscription fee.

Investor B also bought 10,000 yuan of the fund in February. At this time, the net value of the unit fell to 1, so the number of fund shares purchased reached 10,000.

If the net value of the fund unit rises to the point that investors A and B redeem the fund at the same time after one year, then the redemption amount of investor A is yuan and the redemption amount of investor B is: 10,000* yuan.

Obviously investor B’s expected return is higher.

However, the premise for the above situation to occur is that the fundamentals of the fund are good. Such a fund may rebound after a short-term net value decline. If the fund itself is not good, for example, the fund's net value continues to fall, then the more you buy, the more you will lose.

2. Different funds When investors choose between different funds, whether the net value of the unit is large or small, it cannot absolutely be called good or bad.

The choice between different funds depends more on the fund's growth rate. The greater the fund's growth rate and the more stable it is, the better the fund operation is and the greater the profit margin.

Some funds with low net worth may seem like a good deal, but in fact, the net worth has fallen or increased too little due to poor profitability of the fund.

The above content about whether the larger the net value of the unit is better, I hope it will be helpful to everyone.

Warm reminder, financial management is risky, so investment needs to be cautious.