Fund net value, also known as fund unit net value, is the net asset value of each fund unit, which is equal to the balance of total assets minus total liabilities of the fund divided by the total number of units issued by the fund. The subscription and redemption of open-end funds are carried out at this price.

The net value of share funds is an important indicator to reflect the performance of funds, and the transaction price of open-end funds is determined on the basis of the net value of each fund share. Because the value of assets owned by the fund always changes with the fluctuation of the market, the net value of the fund will also change constantly.

Fund valuation is the key to calculate the net asset value of share funds. Funds usually invest in various investment instruments in the securities market, such as stocks and bonds.

Because the market price of these assets is constantly changing, only by recalculating the net asset value of the share fund every day can the investment value of the fund be reflected in time.

References:

Baidu Encyclopedia-Fund Unit Net Value