The calculation method of accumulated net value of fund is different from that of unit net value. The unit net value is obtained by dividing the net assets of the fund by the total share of the fund, and the accumulated net value of the fund is the ratio of all the income of the fund since its establishment to the initial share. Because the cumulative net value takes into account all the benefits and extends in time, it is usually lower than the unit net value.
The fund's fees and transaction costs will also have an impact on the cumulative net value and unit net value. The management fee, custody fee and sales service fee of the fund will be directly deducted from the fund assets, which means that these fees will reduce the net value of the fund. The transaction costs of funds such as handling fees and stamp duty for buying and selling stocks will also have a negative impact on the net value of funds. The cumulative effect of these fees and costs makes the cumulative net value of the fund lower than the unit net value.
The return on investment of the fund will also affect the gap between the accumulated net value and the unit net value. The return on investment of funds will fluctuate with the rise and fall of the market. If the market performance is not good, the return on investment of the fund may decrease, resulting in the cumulative net value being lower than the unit net value.
The accumulated net value of the fund is lower than the net value of the unit, which does not mean that the investment performance of the fund is poor. Because the unit net value of the fund is the net value of each fund share, the cumulative net value of the fund is the net value of the fund considering all income, so the cumulative net value can better reflect the long-term performance of the fund. When the investment strategy of the fund is mainly long-term investment, or the trading frequency of the fund is low, it is normal that the accumulated net value is lower than the unit net value.
When choosing a fund, investors should not only look at the unit net value, but also comprehensively consider the cumulative net value, return on investment, expense rate and other factors of the fund. The accumulated net value of the fund reflects the overall income of the fund and can better evaluate the long-term investment value of the fund. At the same time, investors should also pay attention to the investment strategy of the fund, the ability of the fund manager and the risk level of the fund in order to make more wise investment decisions.
It is normal that the accumulated net value of the fund is lower than the unit net value, which is related to the fund's expenses, transaction costs and return on investment. When investing in a fund, investors should fully consider the cumulative net value of the fund, unit net value and other related factors in order to better evaluate the long-term investment value of the fund.