Funds valued by amortized cost method have a small fluctuation in net value and a stable trend. However, the net value of the fund valued by the market value method fluctuates relatively. The amortization cost method is simply to amortize the due income to every day for interest return. The calculation formula is: premium issuance: amortization amount per period = face value × coupon rate-actual cost × actual interest rate; Amortized cost at the end of the period = amortized cost at the beginning-amortization amount in the current period = initial actual cost-accumulated amortization amount; When discounting: amortization amount per period = actual cost × actual interest rate-face value × coupon rate; Amortized cost at the end of the period = amortized cost at the beginning+amortization in the current period = initial actual cost+accumulated amortization.

The market value method refers to the valuation method calculated according to the market transaction price, which can accurately reflect the current market value of the fund. If the bond price rises sharply in the market, the net value of the fund will also rise accordingly. If the bond price falls in the market, the net value of the fund will also fall accordingly.