In the fund investment market, the cumulative net value of the fund usually refers to the net value of the fund calculated after considering the dividend of the fund. In other words, the cumulative net value of the fund is the result of the net value of the fund plus the dividend of the fund. Under normal circumstances, the accumulated net value of the fund will be greater than the net value of the fund unit. So, what is the use of the accumulated net value of the fund?

What is the use of the accumulated net value of the fund?

From the cumulative net value of 1, we can see how many dividends have been distributed to investors in the history of the fund, which can more accurately reflect the profitability of a fund.

2 The accumulated net value of the fund is the sum of the net value of the fund and the dividends of the fund, so the accumulated net value of the fund can better reflect the historical profitability of the fund.

The accumulated net value of the fund can add dividends back to the net value of the unit, but it is not used as reinvestment to calculate compound interest.

Although the accumulated net value of the fund has the above functions, it should not be ignored that if everyone chooses the cash dividend method instead of the dividend reinvestment method, the accumulated net value of the fund cannot fully and accurately reflect the changes in the fund performance.