What is the cumulative net growth rate of the fund?
The growth rate of the cumulative net value of the fund refers to the percentage increase or decrease (including the dividend part) from the establishment of the fund to the dividend of the fund.
Calculation formula:
Fund cumulative net growth rate = (cumulative net share-unit face value) ÷ unit face value.
For example, if the cumulative net value of a bond fund is 1.08 yuan and the unit face value is 1.00 yuan, then the cumulative net value growth rate of the fund is 8%. The accumulated net value of the fund has a certain relationship with the operation time. If a fund has just been established, its cumulative net growth rate will generally be lower than that of similar comparable funds that have been in operation for a long time.
The purpose of viewing the accumulated net value of the fund:
Since the cumulative net value represents the overall performance of the fund, many investors may rashly only look at the cumulative net value. The net value is mainly to provide a real-time transaction price reference and avoid "greedy and cheap"; Dividends can reflect the profitability of funds to a certain extent, and investors need to consider them from multiple angles when purchasing funds.
Features:
The net value of the fund is mainly manifested in the following characteristics: first, the net value of the fund will naturally be higher if it is established for a long time or grows rapidly after its establishment; The fund has been established for a short time, or its entry time is not good, and its net value is relatively low. Therefore, buying a fund cannot start from the net value of the fund.