A fund is also a kind of securities. Like other securities, its intrinsic value also refers to the net cash flow brought by fund investment, but the basis for determining the intrinsic value of funds is very different from that of stocks and bonds. The future income of stock bonds is predictable, so its value depends on the present value of future cash flows. The future income of the fund is unpredictable. Investment funds are constantly changing portfolio objects, and capital gains are the main source of fund income, while unpredictable fluctuations in securities prices make it unrealistic to predict the future income of funds. Since the future is unpredictable and investors can grasp the "present", the value of the fund depends on the cash flow that can be brought to investors at present. This current cash flow is the current market value of the fund's net assets.
Second, the value of the fund is the embodiment of the fund investment. If the investment is successful and profitable, its value is high; if the investment fails and loses money, its value is low. To put it simply, the annual investment income of a fund with 100 yuan is 10%, and its value is 1 10 yuan or 90 yuan. Investing in this fund of 100 yuan, some people may have bought it from 1 15 yuan, and some people may have bought it from 85 yuan. The price of the fund deviates from its time value due to the influence of supply and demand. It is expected that its value will be higher and more people will buy it. On the contrary, it will be lower than its value.
Value funds usually invest in the stocks of blue-chip companies with stable returns, or in some large-cap companies with excellent performance. Growth funds usually invests in the stocks of companies with good growth after careful analysis.
Allocated funds can also be called mixed partial stock funds or partial stock balanced funds. Generally, the investment style of such funds is more flexible. When the stock market is in a bull market, its investment can be inclined to stock investment, while when the stock market is in a bear market, the investment in bonds or bills can be appropriately increased.