Large fund valuation is high fund valuation, and the assets and liabilities of the fund are estimated according to a certain price. The higher the valuation of the fund, the higher the risk that users are responsible for, and the lower the valuation of the fund company, indicating that the fund has investment value and relatively high profit probability. When choosing a fund, users can choose a fund with a lower valuation or a fund with a more reasonable valuation if they only choose from the company's valuation. The above is the significance of the valuation of large funds.

How to treat fund valuation?

Distinguishing the level of fund valuation mainly depends on the price-earnings ratio of the fund. When the percentage of P/E ratio is higher than 80%, the fund is inflated; when the percentage of P/E ratio is lower than 20%, the fund is undervalued. Buying in undervalued areas has a high probability of making money in the future, while funds in inflated areas have little room for making money in the future. In most cases, the fund valuation is based on the positions reported by the fund on a regular basis. Because there are many types of funds, users can use P/E ratio and P/B ratio to distinguish fund valuation. Among them, the price-earnings ratio is the most commonly used valuation index, which is used to examine the years of stock investment income. Users need to look at the stability of the company when choosing funds. When the company can make money steadily, the lower the P/E ratio, the higher the investment cost performance ratio.

What is the difference between the net value and valuation of a fund?

1, the calculation method is different: the fund company valuation is that the fund manager calculates the total financial assets of the fund divided by the total number of fund shares sold according to the closing price of the previous trading day. Net fund value means that the fund manager calculates the net asset value of the fund unit according to the closing price of the day;

2. Essential difference: Fund valuation refers to the process of calculating and evaluating the values of fund assets and liabilities at fair prices to clarify the net asset value and the net fund share value. The net fund value refers to the ratio of the total net asset value of the fund to the total fund share;

3. Different market efficiency: the net value of the fund is the calculation basis of the purchase and redemption amount of most funds, which is equivalent to the fund's home. Because it is related to the rights and interests of fund users, the calculation of the net value of fund shares needs to be accurate and prudent. Fund valuation is just a process of defining the net value of a fund.

This paper mainly writes about the significance and related knowledge points of large fund valuation, and the content is for reference only.