Is it profitable to buy when the net value of the fund is low and sell when the net value is high? Everyone must buy a fund to maximize the income, so is it necessary to make money? The following is a small series of fund units bought when the net worth is low, hoping to help everyone.

Buy when the net value of the fund unit is low.

Buy when the net value of the fund is low and sell when the net value is high.

Fund profit:

Fund profit refers to the balance of fund interest income, investment income, fair value change income and other income after deducting related expenses. The realized income of the fund refers to the balance of the fund profit minus the income from changes in fair value.

Extended data:

The net value of a fund unit refers to the current total net assets of the fund divided by the total share of the fund. Its calculation formula is: fund unit net value = total assets net value/fund share.

meaning

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).

public notice

The total number of open-end funds is different every day, so it must be counted after the closing date of the transaction, and divided by the net asset value of the fund on that day to get the net asset value of the unit on that day, which can be used as the basis for investors to purchase and redeem.

The subscription and redemption of funds occur every day, so the net asset value of fund units as the basis of transactions must be calculated after the daily market closing and announced the next day.

Net valuation

The valuation of fund unit net value refers to the estimation of fund net asset value at a certain price. Calculating the net asset value of unit fund is the key. Funds usually invest in various investment instruments in the securities market, such as stocks and bonds. Because the market price of these assets is constantly changing, only by recalculating the net asset value of the unit fund every day can the investment value of the fund be reflected in time. The valuation principles of fund assets are as follows:

1. Listed stocks and bonds are calculated according to the closing price on the calculation day. If there is no transaction on that day, it shall be calculated according to the closing price of the latest trading day.

2. Unlisted stocks are calculated at cost price.

3. Unlisted government bonds and unexpired time deposits are calculated according to the accrued interest plus principal on the valuation date.

4. In case of special circumstances, if it is impossible or inappropriate to determine the asset value in accordance with the above provisions, the fund manager shall handle it in accordance with the relevant provisions of the state.

purpose

No matter what kind of fund, the total amount of the fund is divided into several equal integer shares at the time of initial issuance, and each share is a "fund unit". In the process of fund operation, the unit price of the fund will change with the change of fund asset value and income.

In order to accurately price and quote the fund, so that the fund price can accurately reflect the true value of the fund, it is necessary to estimate the actual representative value of each fund unit at a certain point, and publish the valuation result as the net asset value.

Valuation determination

Looking at all kinds of funds around the world, due to different management systems, the specific provisions on the valuation date of fund net assets are not the same. However, it is generally stipulated that the fund manager must calculate and publish the net asset value of the fund at least once every working day or every week or month.

Suspension of valuation

Although the fund manager must evaluate the net assets of the fund according to the regulations, the fund manager has the right to suspend the valuation under the following special circumstances: (1) When the securities trading places involved in the fund investment are closed due to legal holidays or for some reason; There is a huge redemption situation; Other irresistible reasons make it impossible for the manager to accurately evaluate the net asset value of the fund.

When buying a fund, should I buy a high net worth fund or a low net worth fund?

Some people may think that buying funds should be done when the net worth is low, so it is better to buy funds with low net worth. This view is obviously one-sided.

Because the net value of the fund is low, it does not necessarily mean that the net value of the fund is low. And when the fund's net worth is low, it is not only the fund with low net worth, but also the fund with high net worth.

In fact, it is difficult to judge whether a fund is good or not just from its net value, and some conditions need to be added.

First of all, it must be compared among similar funds. Different types of funds may have different risks and benefits, and whether a fund is good or not depends on its comprehensive benefits and risks, so it is only meaningful to compare it with similar funds.

For example, a stock fund and a bond fund may have higher net worth at some point. However, because the net value of stock funds fluctuates greatly, the net value of funds may be lower than that of bond funds after a period of time. After a period of time, the net value of equity funds may be higher than that of bond funds. At this time, it is necessary to use the level of net worth to judge which is better, and there will be contradictions.

Only the same type of fund, the net value trend is more similar and easier. Other things being equal, high-net-worth funds may be better than low-net-worth funds. Because the net value of the fund is high, it at least shows that the fund has earned more in the past.

It is more appropriate to buy a fund when the net value falls relatively low.

In some cases, we can say this, just like buying stocks, so that we can get a better price, but it is clear that when the net value falls, what is the overall market environment? If the net value is so low during any financial storm, you should consider it first to see if the market will fall further. I suggest waiting for the net value to fall to a certain extent and pick up slightly before buying.