Is the higher the accumulated net value of the fund, the better?
The higher the cumulative net value of the fund, the better, because the higher the cumulative net value means that the fund will make more money after its establishment. But for investors, when buying a fund, they should either buy the one with high net value or the one with large room for net value increase.
The accumulated net value of fund units is the sum of the net value of fund units after the establishment of the fund and the accumulated dividends of previous units, which reflects all the income since the establishment of the fund. Cumulative net value = unit net value+cumulative dividend.
Main factors affecting the accumulated net value of the fund:
1 investment operation, the better the investment management operation of the fund, the higher the net value will be;
The longer the fund is established, the longer the fund operates and the higher its net worth may be.
When buying a fund, don't just buy a fund with low net worth, because as long as the fund performance is the same, buying a fund with different net worth will eventually get the same income. Funds with poor long-term performance in the past will usually be weaker than other funds in the future, while the net value of funds with good long-term performance will always hit new highs. Therefore, when buying a fund, it depends on the historical performance of the fund.
Buying a fund depends on its historical performance and the strength of the fund manager. To understand how this fund achieved such performance and whether the investment logic of the fund can continue in the future needs to be analyzed emphatically.