What is the difference between the valuation and net value of a fund?
1, different calculation methods
The net value of the fund is actually the price of the fund. Funds are traded on a net basis. For transactions before 3 pm on the trading day, there is only one transaction price per day based on the net value at the close of the day.
Fund valuation is to value the assets and liabilities of the fund at a certain price. The main purpose of its calculation is to analyze whether the fund has investment value. The higher the valuation of the fund, the bigger the bubble, the greater the probability of the fund's late loss, and the higher the risk that investors bear. On the other hand, the lower the fund valuation means that the fund has investment value, higher profit probability and lower investment risk.
2. The concept is different in nature.
Fund net value is divided into unit net value and accumulated net value, in which unit net value is the asset value of each fund unit, that is, the current total net assets of the fund divided by the total share of the fund; Cumulative net value is the sum of the latest net value of the fund and the dividend performance since its establishment.
Fund valuation is to estimate the value of fund assets and liabilities at fair prices to determine the net asset value and the net fund share value.
What is the basis for the fund's rise and fall?
The rise and fall of the fund is determined according to the net value of the fund at the close of the previous trading day. If the current net value of the fund is higher than that of the previous trading day, the fund is in a rising state, so investors make profits; On the other hand, if the current fund net value is lower than the previous trading day and the fund is in a state of decline, then the investor is losing money.
The rise and fall of the fund is determined by its investment target. When the investment target goes up, the fund goes up. If the investment target falls, then the fund will also fall.