The growth rate of fund net value can be used to evaluate the performance of the fund in a certain period; Cumulative net growth rate refers to the growth rate of the current net value of the fund relative to the net value when the fund contract takes effect, which can be used to evaluate the performance of the fund since its formal operation; Cumulative net growth rate refers to the percentage increase or decrease of fund net value (including dividends) over a period of time.
Since 1970s, the growth rate of fund net value and accumulated net value have become the commonly used evaluation indexes of internationally renowned fund evaluation companies and fund investors, which are used to judge the investment level of fund managers.
Extended data:
Since 1970s, the growth rate of fund net value and accumulated net value have become the commonly used evaluation indexes of internationally renowned fund evaluation companies and fund investors, which are used to judge the investment level of fund managers. Among them, when calculating the growth rate of fund net value, if the fund pays dividends in the current period, the fund net value will decrease, so the dividend amount must be added back to the fund net value at the end of the period.
In the case of no dividends, the cumulative net growth rate of the fund is equal to the net growth rate since the establishment of the fund; In the case of dividends, it is necessary to calculate the net growth rate of each time period with each distribution point as the boundary (the dividend amount should be added back to the net value of the fund at the end of each period), and then calculate the cumulative growth rate of the whole time period, so as to consider the dividend factor.
Baidu Encyclopedia-Fund Net Growth Rate