The low net value of the fund may mean that the fund has been established for a short time, or it may mean that the management level of the fund manager is low, but the cost of investing in the fund is low, and there may be more profit space in the future.
Net fund share refers to the net asset value of each fund share. It is the net value obtained by subtracting the total liabilities from the total capital of the fund and dividing it by the unit shares of all issued funds.
In the process of fund operation, the unit price of the fund will change with the change of fund asset value and 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.
The net value of a fund unit is the net asset value of each fund unit, which is equal to the balance of the total assets of the fund minus the total liabilities and then divided by the total number of unit shares issued by the fund.
The subscription and redemption of open-end funds are carried out at this price. The transaction price of closed-end funds is the known market price at the time of trading; On the other hand, the unit transaction price of the open-end fund depends on the net asset value of the unit fund, which is unknown at the time of subscription and redemption (but it can be calculated after the market closes on the same day and announced on the next trading day).
The valuation of fund unit net value refers to the estimation of fund net asset value at a certain price. Calculating the net asset value of unit fund is the key. Funds usually invest in various investment instruments in the securities market, such as stocks and bonds. Because the market price of these assets is constantly changing, only by recalculating the net asset value of the unit fund every day can the investment value of the fund be reflected in time.