With the increasing popularity of investment and financial management, funds have become one of the investment varieties selected by more and more people. However, although many people have bought funds, it is not clear how funds calculate money, so this paper will analyze this problem from multiple angles.

I. Calculation of Fund Net Value

Fund net value is the focus of many investors' attention, which is the net asset value calculated by the fund at the end of daily trading. Net value = net asset value of the fund/total shares. Among them, the "net asset value of the fund" is the sum of all assets of the fund minus all liabilities, while the "total share" is the sum of the fund shares held by all holders. The purpose of net worth calculation is to reflect the changes of fund assets, so as to guide investors to invest.

Two. Fund's investment portfolio

The fund's asset portfolio is another focus of how the fund calculates funds. Because the investment of the fund is securities and currency, the fund company will invest in different securities markets and different investment varieties according to the investment objectives and strategies of the fund. The buying and selling prices and trends of these investment products will lead to changes in fund assets. At this point, the fund manager will make timely adjustments according to market conditions, thus reducing risks and obtaining better returns.

Three. Calculation of fund income

The calculation of fund income is one of the important aspects of how the fund calculates money. Generally speaking, there are two ways of fund income: one is to calculate dividend income with dividends, and the other is to calculate simple annualized rate of return without dividends; The other is to calculate the cumulative net income with compound interest effect. Compound rate of return refers to the compound of annual average rate of return, which reflects the long-term investment return level of funds, but it is not suitable for funds with short investment period.

Four. Calculation of fund expenses

The cost calculation of the fund is also one of the important aspects of how the fund calculates money. The expenses of the Fund mainly include fund management fees, custody fees and sales service fees. The fund company will calculate the expenses according to the total number of fund shares and the net value of each share every day. These expenses will be deducted when calculating the net value of the fund, thus affecting the final income of the fund holders.

To sum up, how to calculate the fund's money includes not only the calculation of the fund's net value, but also the fund's asset portfolio, income calculation and expense calculation. Investors should understand the basic concepts and calculation methods of these aspects in order to better grasp the risks and benefits of fund investment.