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Basic knowledge of fund introduction: how do funds treat losses or make money
How to see whether a fund is profitable or losing mainly depends on its net value and floating profit and loss.

Net fund value refers to the net asset value of each fund. The formula is: net fund unit value = (total assets-total liabilities) total fund shares. The subscription and redemption of open-end funds are executed at this price, which is calculated after the market closes every day and announced the next day. The transaction price of closed-end funds is the market price determined when buying and selling. Simply put, when the fund is issued, there is a total share, and the net value is how much a fund has sold at present.

The calculation formula of fund net value is: fund unit net value = (total assets-total liabilities) ÷ total fund shares.

The subscription and redemption of open-end funds are implemented at this price, calculated after the market closes every day and announced the next day. The transaction price of closed-end funds is the market price determined when buying and selling.

Simply put, when the fund is issued, there is a total share, and the net value is how much a fund has sold at present.

Look at the profit and loss of the fund depends on this indicator-floating profit and floating loss. A positive floating profit and loss means a gain, and a negative floating profit and loss means a loss. For details, please consult Xue Fund's portfolio experts.