First, the meaning and calculation method of fund net value
Net fund value refers to the net asset value of the fund divided by the total number of fund shares. Its meaning is the value of assets held by each fund. The specific calculation formula is as follows:
Net Fund Value = Net Fund Asset Value/Total Fund Share
Among them, the net asset value of the fund refers to the total value of various investment assets held by the fund MINUS various expenses of the fund (such as management fees and custody fees). ).
Second, the meaning and calculation method of fund valuation
Fund valuation refers to the price estimation of various investment assets held by fund managers. It means that the fund manager estimates the market value of the assets held by the fund. Specific calculation methods include the following:
1. market price method: determine the fund valuation according to the real-time quotation in the securities market.
2. Cost method: that is, historical cost and depreciation budget method are used to account for fund assets.
3. Appraisal price method: determine the value of fund assets through inquiry, comparison and investigation.
Third, the relationship between fund net value and valuation and its impact on fund investment
Fund net value and valuation play an important role in the investment process. The net value of a fund can be regarded as the embodiment of its true value, while the valuation of a fund is an estimate of its true value. The difference between the two may have an impact on investors' decisions.
1. The comparison between the net fund value and the fund valuation can reflect the heat of the market. When the net value of the fund is higher than the valuation, it shows that the fund market is more active and the actual value of the fund assets may be higher. Conversely, if the net value of the fund is lower than the valuation, it means that the market activity is low and the actual value of the fund assets may be lower.
2. The change of fund net value plays an important role in the risk control of investors. When investors buy funds when their net worth is high, they may take greater risks, because the net worth of funds may decline over time. Therefore, investors should pay attention to the historical net performance of the fund and its comparison with the valuation when purchasing the fund.
3. The net value and valuation of the fund can reflect the investment ability and management level of the fund manager. When the net value of the fund exceeds the valuation, it reflects that the investment operation ability of the fund manager is excellent, otherwise it may indicate that the management level of the fund manager needs to be improved.
To sum up, fund net value and valuation are important indicators that must be paid attention to in the process of investing in funds. Investors can grasp the heat of the market by comparing the net value and valuation of funds, thus controlling risks, and at the same time, it can also reflect the investment ability and management level of fund managers and help investors better judge the value of funds.