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What is the net value and valuation of the fund?
What are the stages of fund issuance operation? Are holding period and closing period stupid? Which is the net fund value? Why is there a big difference between intraday valuation and net value? Do you choose "cash" or "share" for fund dividends? Let's talk about these issues today.

I. Various stages of fund issuance and operation

Public Offering of Fund's issuance is subject to auditing system, which basically goes through the stages of declaration, examination and approval, issuance, raising, filing and auditing, and establishment. After the establishment of the fund, some funds that can be listed and traded will also be listed. Of course, some funds may be liquidated and withdrawn from the market during their operation.

Focus on the following "periods":

1. raising period: within 6 months from the date of approval of the issuance by the China Securities Regulatory Commission, the fund manager will start raising funds, and the raising period will generally not exceed 3 months. During the hot issue period, many foundations ended their fundraising ahead of schedule.

2. Closed period: after the establishment of the fund, it will enter a closed period, generally not exceeding 3 months. How long the closure period is, subject to the fund announcement.

3. Opening period: The opening period and closing period start at the same time, but not necessarily end at the same time. It is possible that the fund has been opened and closed, but the opening has not been completed. Theoretically, the opening period should not exceed 6 months.

4. Open period: After the closed period, you can enter the open period and buy and sell freely. If it is a closed-end fund, there is no such thing as "opening", but some of them can be listed and traded, such as Reits.

Speaking of open-end funds and closed-end funds, I have to mention two other varieties:

One is a regular open-end fund, as the name implies, which is only open for a fixed period of time. For example, Xing's new horizons are opened regularly, that is, once every three months. When to open the fund announcement, it will be released in advance.

Source: Fund product information summary update.

One is a holding fund. Such funds can be bought at any time after opening positions, but they must be held for at least a certain period of time after each purchase. For example, Ruiyuan's first fixed income+fund has been steadily allocated for two years, and it must be held for two years after buying, and then it can be sold after two years.

Source: Fund product information summary update.

Second, what is the difference between the unit/cumulative/reinstatement net value? Which one should I watch?

"Net unit value" is the net value we usually see, that is, the transaction price of trading funds. "Cumulative net value" considers dividends and share split on the basis of unit net value. On the basis of accumulated net value, the "net value of reinstatement" considers the reinvestment of dividends.

For example, when a fund was first established, it was 1 yuan. After the increase of 10%, the net values of the three became 1. 1 yuan. Then the fund pays dividends, and each time the dividend is 0. 1 yuan, then the unit net value returns to 1 yuan, and the cumulative net value and reinstatement net value are still 1. 1 yuan. If the fund goes up 10%, then the unit net value is1* (1+10%) =1.1yuan, and the cumulative net value = unit net value+dividend =1.

The net value of reinstatement can more accurately evaluate the real profitability of funds, which is why we use the net value of reinstatement when comparing and screening funds.

3. What are the factors that affect the rise and fall of fund net value?

1, the underlying asset. If the stocks bought by the fund generally fall, the net value of the fund naturally falls;

2. Dividend. After dividends, the net value of fund units will decline;

3. Great redemption. Its influence on the net value of the fund can be positive or negative.

The impact of huge redemption on the fund's net value comes from two aspects:

On the one hand, the redemption fee is included in the fund assets. The shorter the holding time, the higher the proportion of assets included in the fund, which may drive the net value of the fund to soar. However, it is not absolute. If the redemption share accounts for a high proportion and is held for a long time, then the redemption fee will be less, and the management fee needs to be shared by a few share holders.

On the other hand, fund managers should deal with the market situation at the time of redemption. When there is a huge redemption, the fund's cash reserves may not be enough to cope with the redemption. At this time, the fund manager needs to sell some assets such as bonds and stocks held by the fund. If the market rises sharply at the time of selling, it will bring a net increase, but if the timing of selling is not appropriate, it may also lead to a net decrease.

4. Why is there a big difference between the intraday valuation and the net value of the fund?

Intra-day valuation is estimated according to the position data of the latest report of the fund, while the position shown in the periodic report is the last day of the quarter or the last day of the half year or the year, and the periodic announcement will not be disclosed immediately, which will take some time (for example, quarterly report takes 15 days, and interim report and annual report may take 2 or 3 months), so the position information we see is lagging behind. During this period, the fund may have adjusted its position;

In addition, the quarterly report only discloses the top ten awkwardness stocks. If the proportion of the top ten awkwardness stocks in some funds is very low, the valuation will be even more inaccurate.

Therefore, the intraday valuation can be referenced, but it can't be absolutely believed, especially the farther away from the reporting period, if the capital turnover rate is still high, the credibility will be even lower.

Source: Good Buy Fund app

5. What is the process of fund dividend, cash dividend or dividend reinvestment?

Fund dividends, investors can focus on three dates. Take Yin Hua Credit Sijihong as an example. This fund basically pays dividends every quarter:

Source: wind, dividend information of a fund.

The first is date of record. Only investors who bought before date of record can participate in the dividends of the Fund.

Followed by ex-dividend date, dividends will be deducted from the fund assets. At this time, the net value of the fund will be deducted from the dividend share, and the net value will be reduced. But at this time, the bonus was not paid to the account. Therefore, on the ex-dividend date, investors may see the loss of the fund, but this is only a decrease in book assets. At present, the registration date and ex-dividend date of most funds are on the same day.

Finally, the dividend payment day, generally on the second day of ex-dividend day, fund companies distribute dividends to investors.

Note that dividends only go from the left pocket to the right pocket and will not increase additional income.

For investors who choose cash dividend or dividend reinvestment, want to settle down or have cash needs, choose cash dividend; For investors who are optimistic about the market outlook and intend to invest for a long time, or investors who are making a fixed investment, it is more suitable for dividend reinvestment, because dividend reinvestment can reduce investment costs and does not require subscription fees. Generally, the default is cash dividend. If you want to reinvest in dividend, remember to modify it.