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.
The net value of a fund unit refers to the current total net assets of the fund divided by the total share of the fund. Its calculation formula is: fund unit net value = total assets net value/fund share.
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).
Net valuation
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.
The valuation principles of fund assets are as follows:
1. Listed stocks and bonds are calculated according to the closing price on the calculation day. If there is no transaction on that day, it shall be calculated according to the closing price of the latest trading day.
2. Unlisted stocks are calculated at cost price.
3. Unlisted government bonds and unexpired time deposits are calculated according to the accrued interest plus principal on the valuation date.
4. In case of special circumstances, if it is impossible or inappropriate to determine the asset value in accordance with the above provisions, the fund manager shall handle it in accordance with the relevant provisions of the state.
purpose
No matter what kind of fund, the total amount of the fund is divided into several equal integer shares at the time of initial issuance, and each share is a "fund unit". 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.
Valuation determination
Looking at all kinds of funds around the world, due to different management systems, the specific provisions on the valuation date of fund net assets are not the same. However, it is generally stipulated that the fund manager must calculate and publish the net asset value of the fund at least once every working day or every week or month.
Suspension of valuation
Although the fund manager must evaluate the net assets of the fund according to the regulations, the fund manager has the right to suspend the valuation under the following special circumstances: (1) When the securities trading places involved in the fund investment are closed due to legal holidays or for some reason; There is a huge redemption situation; Other irresistible reasons make it impossible for the manager to accurately evaluate the net asset value of the fund.