The lower the net value of the fund, the better. The lower the fund, the more cautious you must be.

Many people make calculations like this when buying funds. For the same 10,000 yuan, a fund worth 1 yuan can buy 10,000 shares, but a fund worth 1.3 yuan can only buy more than 7,600 shares. A fund with a cheaper price can buy more.

share, so I bought a cheap fund.

In fact, the price level does not affect the risks and returns of investment funds. For example (excluding handling fees): there are 1,000 yuan to invest in funds, the current net value of fund A is 0.5 yuan, and the current net value of fund B is 1 yuan.

If you use 500 yuan to buy fund A, you can buy 1,000 shares, and if you use another 500 yuan to buy fund B, you can buy 500 shares.

The funds rose sharply on the second day. Both Fund A and Fund B rose by 2%. Then each share of Fund A rose by 0.01 yuan and each share of Fund B rose by 0.02 yuan. The profits are respectively 1), Fund A's profit: principal

500 yuan X 2% = 10 yuan or 0.01 yuan

The profit or loss brought by low-priced funds mainly depends on the principal invested and the daily increase or decrease, and has nothing to do with the share.

Wang Zihan, chief analyst at Ask Financial Management, reminded that although funds with lower prices can buy more shares, it does not mean they make more profits than funds with higher prices.

Another reason why lower fund prices are better is that many people believe that the cheaper the fund, the greater the room for upside.

For example, a fund with 1 yuan has more upside potential than a fund with 1.3 yuan.

In fact, funds are different from stocks.

The stock price depends on its fundamentals and market supply and demand, while the fund price reflects the value of the stocks, bonds and other assets held by the fund.

A fund with a high price indicates that the manager is more successful and the stocks and bonds in the position perform well.

For funds with low prices, there may be problems with the management of the fund manager.