Calculation of net worth
To calculate the purchase and redemption price of fund shares, we must first calculate the net value of fund shares. The net fund share is equal to the net fund asset value divided by the total fund share. The net asset value of a fund refers to the value of the total asset value of the fund minus the fund liabilities that can be deducted from the fund assets according to laws, administrative regulations, provisions of the the State Council securities regulatory authority and the Fund Contract. The total assets of the Fund include all kinds of securities owned by the Fund, principal and interest of bank deposits, subscription funds receivable and other investments. In order to objectively and accurately reflect the value of fund assets, it is necessary to evaluate the fund assets according to the relevant provisions of the state and the provisions of the fund contract. Open-end funds should usually value their assets every working day. The valuation objects are assets held by the fund, such as stocks, bonds, dividends, bond interest, principal and interest of bank deposits, etc.
The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.