Net value of fund unit: refers to the current total net assets of the fund divided by the total share of the fund. Net fund value = total assets/fund share

The net value of a fund unit is the net asset value of each fund unit, which is equal to the balance of the total assets of the fund minus the total liabilities and then divided by the total number of unit shares issued by the fund.

The subscription and redemption of open-end funds are carried out at this price. The transaction price of closed-end funds is the known market price at the time of trading; On the other hand, the unit transaction price of the open-end fund depends on the net asset value of the unit fund, which is unknown at the time of subscription and redemption (but it can be calculated after the market closes on the same day and announced on the next trading day).

Dividend reinvestment, commonly known as rolling interest calculation, means that when the fund pays dividends in cash, the fund holder directly uses the cash obtained from the dividends at the fund price of the day to purchase the fund and increase the original fund share. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees. Fund managers encourage investors to invest more, so there is generally no charge for dividend reinvestment. If investors want to invest more after receiving cash dividends, they will be regarded as new subscriptions and need to pay subscription fees. Therefore, choosing dividend reinvestment is conducive to reducing the cost of investors, and dividends can also be operated like buying individual stocks.