Net unit value and its function
Net unit value refers to the basis for calculating the subscription share and redemption amount of open-end funds. We know that no matter what kind of fund, the total amount of the fund is divided into several equal integer shares when it is first issued, and each share is a "fund unit". The calculation formula is: net value of fund unit = (total assets of fund-liabilities of fund)/total share of fund.
In the process of fund operation, the unit price of the fund will change with the change of fund asset value and expected income. In order to accurately price and quote the fund, so that the fund price can accurately reflect the true value of the fund, it is necessary to estimate the actual representative value of each fund unit at a certain point, and publish the valuation result as the net asset value.
How to choose a fund according to the unit net value
The first step is to understand the operating ability of the fund itself.
First of all, we should choose funds and fund companies with strong management ability. Regardless of the net value of the fund, we must first choose a fund with strong anti-risk ability. Only a strong and professional fund allocation will make the fund appreciate continuously.
The second step is to know whether the net value of the fund participates in dividends.
For any fund, the net value can indeed measure the profitability of the fund, but some high-profit foundations reduce the net value of the fund because of dividends, which makes the fund show a low net value. If you don't pay attention, you will miss the excellent fund.
The third step is to observe the net value.
Knowing the above two parts, we can choose the fund according to the level of net worth. Under normal circumstances, if the selected fund does not participate in dividends, the higher the net value, the stronger the profitability. Investors should choose high net worth, not cheap ones.
The so-called appreciation space is to observe new funds. Generally speaking, although the new fund is weak in risk resistance, it has great potential, rapid growth and rapid growth.
The above is how to choose the fund according to the net value of the unit. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.