Fund redemption refers to selling the invested fund shares and obtaining the cash recovery principal and income. Redemption operation is very common in fund investment, but how to calculate the profit and loss is a concern of many investors.
The calculation method of fund redemption profit and loss depends on the net value of the fund. The net fund value is the net asset value of the fund divided by the total number of fund shares, which is generally announced every working day. When investors redeem the fund, the redemption amount is calculated according to the redemption share and the net value of the fund.
There are two factors to be considered in calculating the profit and loss of fund redemption: the holding period of the fund and the net value of the fund at the time of redemption. The longer the holding period, the higher the redemption rate. The change of fund net value will also affect the calculation of redemption profit and loss. If the net value at redemption is higher than the net value at purchase, then you can make a profit, and vice versa.
It should be noted that there are subscription and redemption fees for fund redemption. Subscription fee refers to the fees that investors need to pay when purchasing funds, and redemption fee refers to the fees that investors need to pay when redeeming funds. These expenses will reduce the income of investors, so they need to be included in the calculation of fund redemption profit and loss.
The calculation method of fund redemption profit and loss is relatively simple, mainly based on the net value of the fund and the holding time. However, it should be noted that the subscription and redemption fees at the time of redemption also need to be included in order to calculate the investor's income more accurately. When investing in funds, we should choose according to our own risk tolerance and investment objectives, and better grasp the calculation method of fund redemption, so as to obtain better investment income.