I summed up the following questions about the unit price of positions with my friends who have invested in long-term winning plans:

Why do I do the same operation as E, but the unit price of my position is quite different from E?

The unit price of e large position is lower than the current net value. Can you make up the position according to the average price method?

Why is the unit price of E's big position not equal to the current net value?

I hope today's article can answer these questions. The unit price of the position is the average unit price of the fund shares you hold. Let's look at the formula first:

Unit price of position = position cost/position share

The formula looks simple, but different scenarios and different purposes may calculate different results.

For example, it is still an old habit. For the sake of simplicity, I don't consider the subscription fee and redemption fee in the example.

Case 1- The simplest case

If you buy 100 yuan when the net value of fund A is 1.0 and 100 yuan when the net value is 2.0, what is the unit price of your fund A position?

This question should not be miscalculated by a more careful student. Unit price of positions = (100+100)/(1001.0+100/2.0) =1.333. Please note that it is not (1.0+2.0)/2= 1.5. Don't forget all the elementary school knowledge! The unit price of a position is not the average of two purchase prices, but the total cost you spend divided by the total share you hold.

Knowing the unit price of the position and the current net value of the fund, we can easily know whether it is a profit or a loss now. The unit price of the position is lower than the current net value, and now it is profitable. The unit price of the position is higher than the current net value, and now it is losing money.

In a simple case, you can use the unit price of the position to calculate the cumulative rate of return. If the current net value of fund A is 1.5 yuan, the cumulative rate of return of holding fund A in case 1 is:

( 1.5- 1.333)/ 1.333= 12.5%

Case 2- Sold

If you buy 100 yuan when the net value of fund A is 1.0, buy 100 yuan when the net value is 2.0, and sell 100 yuan when the net value is 2.5, what is your unit price of fund A?

The key factor to be considered in case 2 is, what do you think of the sold 100 yuan, which is your cost or cost+profit?

If the sold 100 yuan is considered as the cost, your position cost =100+100 =100 yuan, and your position share = 100/ 1.0+65438.

Unit price of position = position cost/position share

= 100/ 1 10=0.909

The unit price of the position thus calculated is the same as case 1. If it is higher than the current net value, it is now a loss; if it is lower than the current net value, it is now a profit. Most of the brokerage software I have seen calculates the unit price of positions in this way, so it is easy to see my profit and loss status on a variety. However, the rate of return calculated from the unit price and current net value of this position will be far from your real cumulative rate of return. For example, the following variety shows a yield of 300.27%, but I know that I didn't earn 300% on this variety, but my accumulated income is still relatively high compared with the remaining positions.