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How did the net value of OTC funds come out?
Funds are divided into on-site and off-site. On-site refers to funds traded in the secondary market, and off-site refers to funds traded outside the secondary market. There is only one net value of OTC funds a day. Under normal circumstances, the funds we buy in banks or third-party fund trading platforms belong to OTC funds. So how did the net value of OTC funds come out? Let's get to know each other.

How is the net value of OTC funds obtained?

Calculated according to the total assets and liabilities of the fund. The formula for calculating the unit net value of the fund on that day is: unit net value = (total fund assets-total fund liabilities)/total fund shares. If the total operating assets of the fund increase on that day, the net value of that day is higher than yesterday, and vice versa, the capital is not guaranteed. The net value of OTC funds does not change in real time, it is announced in the evening, and it is updated after 8: 00 every night. Because the fund positions are only announced once in the first quarter, there is a lag, so there is no guarantee that the valuation is the same as the actual net value.

Closed-end funds and open-end funds usually update their net value once a week, while open-end funds should update their net value once every open day. The purchase/redemption of OTC funds is conducted according to the principle that the price is unknown. Trading applications before trading day 15 are traded according to the closing net value of the fund, and trading applications after trading day 15 are used as trading applications for the next trading day, and trading applications are traded according to the closing net value of the fund for the next trading day.

The net value of the fund is actually the price of the fund. When investors buy a fund, they determine the amount they want to invest, and then convert it into the fund share held by investors according to the unit net value of the fund.