Because the quality of a fund depends on its profitability, not its net value.
For example, Guo Fu Tianhui Growth Mixed Fund (16 1005) is a fund with great investment value, although its unit net value has reached 1.6 yuan.
This is because the fund manager who manages this fund is Zhu Shaoxing. During the 12 years of managing this fund, it experienced two major bull-bear conversions and achieved a high return of 800.48%.
Therefore, when buying a fund, don't think that the fund has no investment value just because the price is high.
So, what indicators can reflect the historical profitability of the fund?
To answer this question, we need to know the net value of three types of funds.
1. Net value of fund unit
The net value of a fund unit is what we often call the fund price, that is, the net asset value of each fund unit. According to the regulations of the regulatory authorities, for open-end funds, fund companies will announce the net value of fund shares on that day after the market closes every day.
With this "unit net value", you can know how many funds you have bought. For example, for a fund with a net unit value of 2 yuan, you can buy 250 fund shares by investing in 500 yuan, regardless of transaction costs.
Here is a little knowledge point:
Because the unit net value of the fund is calculated according to the closing price of the stock market on that day after the market closes every day, as long as you buy before 3 pm on the trading day, it is calculated according to the closing price of that day.
2. Accumulated net value of the fund
The unit net value mentioned above is the fund net value calculated without considering the fund dividend. If the dividend of the fund is taken into account, then the calculated figure is the accumulated net value of the fund.
Cumulative net value = unit net value+fund dividends over the years.
Under normal circumstances, the accumulated net value of the fund will be greater than the net value of the fund unit. If a fund has not paid dividends since its establishment, its unit net value is equal to the accumulated net value.
Therefore, the accumulated net value of the fund can better reflect the historical profitability of the fund.
3. Fund recovery net value
The cumulative net value mentioned above is the net value calculated on the assumption that all fund investors use "cash dividend", but some citizens use the method of "dividend reinvestment", so it is necessary to introduce "net value of fund reinstatement".
For example, Guo Fu Tianhui Growth Mixed Fund (16 1005).
According to the data, as of1October1,20 18, the accumulated net value of this fund is 4.380 1 yuan. But its net weight is 8.0 1 18 yuan.
Due to the consideration of "dividend reinvestment", the net value of fund reinstatement more truly reflects the historical profitability of the fund.
Therefore, this indicator is often cited by many fund companies and third-party rating agencies to calculate the fund performance return.