To understand this problem, we must first understand the difference between fund valuation and net worth. Fund valuation refers to the process of calculating and evaluating the value of fund assets and liabilities at fair prices to determine the net asset value and net fund share value. The fair value is the current transaction price of the fund. For example, a closed-end fund trades in the secondary market, and the current transaction price is 2.05 yuan, then this 2.05 yuan is the valuation of the fund. The net value of a fund unit refers to the ratio of the current total net assets of the fund to the total share of the fund.
What is the reason for the great difference between fund valuation and net value?
First, the valuation of the fund is affected by the current relationship between supply and demand of the fund. If everyone is optimistic about the fund and many people buy it, then the valuation price of the fund is higher than the net value. On the contrary, if people are generally not optimistic about the fund, the valuation of the fund will be lower than the net value of the fund, and more people will be willing to sell it at a price lower than the net value.
Second, there are transaction costs in fund subscription or redemption, which leads many investors to be willing to sell directly in the secondary market when the fund is listed;
Third: Fund redemption takes about 3-7 trading days, and the time cost is relatively high.
The above three points are the analysis of the reasons for the great difference between fund valuation and net value. In the process of investment, we should also study hard, distinguish the advantages and disadvantages of the fund, and give our money to the assured fund company. Warm reminder: financial management is risky and investment needs to be cautious.