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What is the significance of net worth in financial management?
1. The net value in financial management is also the value of the product, and the current net value is the current value of the product. Take capital as an example. Net fund value is the net asset value of each fund. Net value of fund unit = (total assets-total liabilities) ÷ is the total share of the fund. Pure wealth management refers to wealth management products with uncertain expected income at the time of issuance. The product income is expressed in the form of net value, and investors enjoy floating income according to the actual operation of the product. Divided into closed-end net worth products and open-end net worth products.

2. Net value generally appears in the information of asset management products, which refers to the net asset value of each product. The calculation formula is: unit net value = total net assets/product share. Wealth management products usually start with the net assets of 1, but the net value of products may change up and down. It is usually published at a fixed cycle, such as daily, weekly or monthly. In the past, bank wealth management products will announce the expected rate of return. After holding and maturity, investors can generally get the actual expected rate of return roughly equivalent to the expected rate of return, which has the nature of rigid cash.

The so-called non-net-worth wealth management products refer to products with fixed expected returns according to market conditions. It operates like an open-end fund. During the product opening period, investors can purchase and redeem at any time, and the expected income of the product is directly related to the net value of the product. The core difference between net worth wealth management products and non-net worth wealth management products lies in the difference of undertakers. Net-worth wealth management products represent wealth management products that meet the future regulatory needs, while non-net-worth wealth management products mainly represent the breakeven and expected income in the old regulatory era. The former has more advantages in supervision and risk prevention, and the excess returns and risks are mainly scattered among individuals. The latter is a traditional financial product representing "fair exchange", and the excess returns and risks are mainly concentrated in commercial banks. In essence, there is no significant difference between the two in asset investment and income. For us, in most cases, the risk level of both is low. The difference between them lies in asset risk preference, income calculation method and income distribution method, and the core difference lies in the risk taker of the final principal.