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Why is net worth normalization misleading?
The reason why the value normalization is misleading is that the net value of the fund is normalized after the split, and the number of funds held by investors increases after the share is expanded, but the actual value does not increase. There is an error between the two. Many people will be infatuated with a dollar fund, which will lead to some misleading situations to a great extent.

I. Detailed explanation of normalization of net worth

There is a unified net value in the fund market, that is, when the fund pays dividends in the early stage, expanding the share will reduce the fund price to one yuan. For example, if the fund held by investors is 100 yuan, and the net value is 2 yuan, then the number of funds held by investors is 50, and you can get dividends from 50 yuan after dividends, while the fund held by investors is also 50 yuan, and the sum of them is still 100 yuan.

Second, there are errors in the normalization of net worth.

In the fund market, investors are prone to make the mistake that when the net value is normalized, the number of funds they hold and the actual profits have changed. Fund dividend refers to the distribution of part of the income to investors in the form of cash, which is itself a part of the original net value of the fund unit.

Third, ways to avoid normalization of net worth.

When investors face the stock market, if they want to avoid the unification of net worth, then we need to do some planning before investing. First of all, when choosing a fund, we should pay attention to the trend of this fund. We can refer to the specific trend of this fund in the first two to three months to judge the future trend of this fund. Whether it will lead to a certain deviation in the number of fund shares in your hands because of the expansion of your own assets. When there is a phenomenon of normalization of net worth, we should also make a stop loss plan in time.

abstract

There are risks in entering the market, so investment needs to be cautious. For consumers who enter the fund market, they must pay attention to the corresponding research and understanding of the choice of funds to avoid being invincible in the process of purchasing funds and considering the future trend of funds.