What is the net fund value?
Net fund value refers to the value represented by each fund unit, which is the balance of the total market value of assets minus liabilities at a certain point in time. When we choose a fund, we can use the net value of the fund as a reference index.
Indicators for judging the net value of funds
Net unit value
The unit net value of a fund refers to the net value of each fund share, which is simply the transaction price of the fund.
Net value of fund unit = (total assets-total liabilities) ÷ total fund shares
For example, the net value of the newly established fund is 1 yuan. If we subscribe for 1 ,000, it will be 1 ,000 yuan.
After a period of time, the unit net value of the fund is 1.3 yuan, which means that the present value of each fund is 1.3 yuan.
We buy at a net value of 1 yuan. If it is sold now, the market will trade according to 1.3 yuan.
It can be seen that the net value of the fund unit is the basis of the transaction, and it is also the basis of the fund purchase and redemption.
Cumulative net value
But sometimes it is impossible to fully understand the real performance level of the fund just by looking at the unit net value of the fund, so we need to introduce "cumulative net value".
Cumulative net value is the sum of unit net value plus historical dividends of the fund. Namely: cumulative net value = unit net value, each historical dividend. Generally, when we review the long-term historical performance of funds, we will only pay attention to the accumulated net value.
If there is a big difference between the unit net value and the accumulated net value of a fund, it means that the fund pays more dividends. However, the amount of dividends paid by the fund is not the standard for judging the performance of the fund, and everyone must pay attention to it.