what is the net value of fund reinstatement?
to understand the net value of fund reinstatement, we must first understand what is the net value of fund and the accumulated net value of fund. The net value of the fund refers to the unit value of the fund on a certain day, and in popular terms, it is the price of the fund on that day. For open-end funds, fund companies generally publish the net value of the fund every day, and this figure changes almost every day. For the basic people, the net value of the fund multiplied by the number of shares they hold in the fund is the total value of the fund.
during the operation of the fund, there may be dividends or splits, and at this time, the unit net value will change greatly. For example, if the net value is a fund in 1.8 yuan, the net value of the fund will become 1.5 yuan after dividends are distributed to .3 yuan. In order to facilitate the comparison between funds, there is the concept of cumulative net worth. Cumulative net value, regardless of whether the fund pays dividends or not, is only the accumulation of daily increase and decrease in the net value of the fund since its establishment, plus the initial net value of the fund.
If you think about it carefully, you will understand that when comparing the historical performance of funds, the reference significance of fund net value is not great, but the accumulated net value of funds with more reference significance. But once again, the cumulative net value does not consider the dividend factor, which does not mean that the dividend is not the income that investors have already got. These dividend factors should also be taken into account when calculating the historical performance of funds, which is why Jin Lifang Fund Network takes the net value of fund reinstatement as a reference.
the fund's net re-weighted value refers to the re-weighted calculation of the fund's unit net value, which comprehensively considers the dividend or split factors of the fund, and calculates the historical net value of the fund without any dividend or split, thus restoring the fund's net value.
The significance of the fund's net reinstatement is to compare the historical performance of the fund fairly, restore the true face of the historical growth rate of the fund, and help fund investors make fund selection. If you see that the historical growth rate of some funds on Jin Lifang Fund Network is not the same as that on other websites, please pay attention to the historical dividend information of this fund, because Jin Lifang calculates the historical growth rate of the fund through the re-weighted growth rate, so it will be slightly higher or even much higher on other websites.