The net value of 1.05 refers to the profit of 0.05 yuan per fund. When each fund was first issued, it was 1 yuan. When the net value shows 1.05, it means that each fund has a profit of 0.05 yuan. Net value, also known as depreciation value, refers to the original value or replacement value of fixed assets after deducting accumulated depreciation. Net worth is how many stocks each fund contains, and its long-term growth comes from the value growth of assets such as stocks and bonds invested by fund managers at the bottom.

In the short term, factors such as fund dividend, short-term market style, position change, fund manager change and fund position level are all reasons for the change of its net value. Even if the current net worth has reached a new high, its future growth may not be directly related to the current situation.

The net value of a stock is also called the book value of a stock. The net value of each common share that can be allocated to the company's accounting books is the value of the actual assets contained in the stock. It is equal to the net value of the company minus the balance of the total face value of the company's preferred shares in circulation, and then divided by the number of common shares in circulation.

Shareholders' equity is also equal to the company's assets MINUS liabilities, that is, the company's net worth. When the company loses money year after year and the accumulated losses exceed the original provident fund, the net value of the company will be less than the capital, and then the denomination of preferred stock will be less than that of common stock.