Net value of fund unit
The unit net value of the fund is the price shown when we buy the fund. The net value of the fund unit on that day is the net asset value obtained after the total funds of the fund go out of various costs and expenses divided by the fund share on that day.
The fund has only one net value per trading day, which can reflect the profit and loss of the fund on that day, and the dividend of the fund will affect the performance of the unit net value.
Cumulative net value of fund
The cumulative net value of the fund is the net value of the fund unit plus the historical dividend of the fund. It reflects the total income of the fund since its establishment, so the accumulated net value of the fund is greater than the unit net value. If the fund has never paid dividends or split, the accumulated net value is equal to the unit net value.
Is the net value of the fund the same as the stock price?
Most people like to equate the stock price with the net value of the fund, and take it for granted that the lower the net value of the fund, the cheaper the fund price and the greater the room for the fund to rise.
Behind the stock are listed companies, and the fund is a portfolio. The net value of a fund depends on the overall value of the assets in its portfolio.
If the overall operation of a fund is very good and the management ability of the fund manager is high, the net value of the fund will be higher. At the same time, the longer the fund operates, the higher its net worth may be.
In other words, there is no upper limit for the rise of the fund's net value. Aside from the influence of dividends and other factors, as long as the fund is properly managed and operated, the net value of the fund will continue to rise. Therefore, for an excellent fund, we don't have to be afraid of heights.