The fund is a net worth product, which does not guarantee the principal or the expected return, that is to say, investors may have the risk of principal loss after purchasing the fund. Many investors don't know much about the calculation method of the expected return of the fund, so what does the loss of the fund mean? Let's take a look together.

1. What do you mean by fund loss?

Fund trading is calculated according to the net value of the fund unit on the trading day. Simply put, if the redemption amount of the fund is higher than the principal of the fund investment, it is a profit, otherwise it is a loss.

The principal of fund investment is the total amount of funds purchased, and the redemption amount of funds = fund share * net value of fund units-redemption fee.

If the fund does not pay dividends, then the fund redemption share and the fund subscription share should be the same, and the fund redemption fee is not high as a whole, which can be exempted after holding it for a certain period of time. Therefore, the redemption amount of the fund is mainly related to the net value of the fund unit on the redemption date.

For example, if an investor buys a fund at 1 1,000 yuan, the net unit value of the fund on the day of purchase is 1, and the subscription rate is 0, that is, the fund investment principal is 1 1,000 yuan and the fund share is1=/kloc.

Assuming that the investor holds 1 year and sells it, and the net value of the fund unit on the redemption date is 0, the redemption amount is = 10000* yuan.

The redemption amount is less than the investment principal 1000 yuan, which means that the investor lost 1000 yuan.

On the other hand, if the net value of the fund unit on the redemption date, the redemption amount = 10000* yuan, which means that the investor has made a profit 1000 yuan.

Two. Book loss and actual loss

The net value of the fund is updated daily according to the net asset value and total share of the fund, that is to say, during the period when investors hold the fund, the net value of the fund unit will constantly change, which may rise or fall.

Fund redemption is calculated according to the unit net value on the redemption trading day, which has little to do with the rise and fall of the net value before redemption. Therefore, even if the net value of the fund falls in the middle, even lower than the net value of the fund at the time of subscription, as long as the fund does not apply for redemption, it will only be a book loss, and only redemption will produce actual losses. If investors choose to continue holding, the net value will rebound in the next trading day, so there will be no book loss.

What does the above fund loss mean? I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.