The proportion of fund to net value refers to the proportion of stocks, bonds or cash allocated by fund positions to the total amount. The proportion of net worth can be calculated from the company's financial statements, which is a full reflection of shareholders' rights and interests, or the capital value of the enterprise corresponding to the stock in that year. Therefore, the net value of stocks reflects the rights and interests that the self-owned funds and shareholders should enjoy together.

What does the net asset ratio mean?

The ratio of net worth refers to the ratio of the total assets of a stock to the total assets of a fund. The higher the proportion of net worth, the greater the influence of this share on the net worth of the fund. The net asset value of the fund represents the rights and interests of the fund holders, that is, after deducting the total liabilities from all the assets of the fund company, the remaining fund share is the net asset value of the purchaser. Fair value is the market price, and the value of financial assets at the time of entry is called historical value. Therefore, it also shows that the historical value of financial assets is often not equal to its current market price, so fair value is usually used to calculate the company's financial assets.