netassetvalue (NAV) and cumulativenetassetvalue (CNAV) are two concepts that often appear in investment funds. Although they are all related to the net value of funds, they have different meanings and calculation methods. Understanding the difference between these two concepts is very important for investors, because they can help investors better understand and evaluate the value of funds.

first of all, the net unit value refers to the net asset value per share of the fund. It represents the undistributed profits and investments owned by each fund, minus the liabilities of the fund. The unit net value is usually calculated on a daily basis, and is calculated by subtracting the total net value of liabilities from the assets of the fund.

In contrast, the accumulated net value refers to the accumulated net value of an investment fund since its establishment. Cumulative net value is calculated based on the initial investment, usually based on the initial investment per unit. It represents the overall performance of the fund, including investment income and capital appreciation.

secondly, the calculation methods of unit net value and accumulated net value are also different. The unit net value is calculated according to the daily net assets of the fund and the total number of shares. The formula for calculating unit net value is: unit net value = (fund net assets-fund liabilities)/total number of shares.

However, the cumulative net value is calculated according to the daily unit net value and the compound interest calculation method. It can be calculated by accumulating the daily unit net value. The calculation formula of cumulative net value is: cumulative net value = unit net value *(1+ daily rate of return) days.

from the perspective of investors, the meaning of unit net worth and accumulated net worth is also different. Unit net value is usually used to calculate the investment income of investors. When buying or selling investment funds, investors usually calculate the share and price of buying or selling according to the unit net value of the fund.

The cumulative net value is more suitable for evaluating the long-term performance of investment funds. It can reflect the overall performance of the fund, including investment income and capital appreciation. By observing the accumulated net value of the fund, investors can better understand the long-term investment return of the fund.

In addition, unit net worth and accumulated net worth are different in risk assessment. Unit net value can help investors judge the daily fluctuation and risk level of funds. Funds with high volatility usually have higher risks, while funds with low volatility are relatively stable.

In contrast, cumulative net worth can provide a more comprehensive risk assessment. By analyzing the cumulative net value curve of the fund, investors can understand the performance of the fund in different market environments and evaluate its potential risks and returns according to these data. The decline in the cumulative net value curve may mean that the fund is risky or has poor long-term returns.

to sum up, unit net worth and accumulated net worth play different roles in the understanding and evaluation of funds. The unit net value is used to calculate the daily investment income and judge the risk and volatility level of the fund. The cumulative net value is more suitable for evaluating the long-term investment return and risk level of the fund. When choosing an investment fund, investors need to comprehensively consider the unit net value and accumulated net value in order to better understand and evaluate the value and performance of the fund.