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What is a position share?
In investment and financial management, we often hear that the share of positions and the principal are different. So what is the position share? How is the position share less than the principal? We have also prepared relevant contents for your reference.

What is a position share?

Position share refers to the number of wealth management products bought or held. Take the fund as an example, the share of fund positions represents how many shares have been bought. For example, if each fund 1 yuan, you buy 1 thousand shares, then your position share is 1 thousand shares.

So what if the position share is less than the principal?

1, product unit net value is higher than 1. Take the fund as an example, the fund position share is calculated according to the fund net value, and the subscription share = [subscription amount /( 1+ subscription rate) ]/T-day fund net value. Without considering the influence of subscription fees and other expenses, the share is equal to the principal only when the net value of the fund share is equal to 1; When the net value of the fund unit is less than 1, the share is greater than the principal; When the net value of the fund unit is greater than 1, the share is less than the principal. For example, the fund principal 10000 yuan, the fund net value 1.25, and the position share is 8000, which is less than the principal.

2. Handling fees, commissions or other transaction fees will be required in investment transactions, and the amount recovered is the part of the selling amount minus the handling fees. Take the fund as an example. According to the different charging methods, the same fund product can be divided into Class A and Class C, in which the subscription fee of Class A fund is directly deducted from the subscription amount, which may lead to the holding share being lower than the principal. In addition, the fund needs to be redeemed when it is sold, and the fund selling fee is equal to the total fund selling amount * redemption rate. For example, on the trading day, the net fund value is 1, the selling rate is 10000 yuan, the redemption rate is 1.35%, and the selling fee is 135 yuan. Therefore, when redeeming wealth management products, the amount actually received will be different from the share applied for redemption.