It is the unit of measurement of the fund. Generally speaking, the market value of the fund held is equal to the holding share multiplied by the net value. For example, an investor's fund share is 1000, multiplied by the net value of the fund he purchased, and the result is his holding amount, which is 2000 yuan.
What is the concept of net worth?
Fund net value refers to the unit net value, that is, the total assets of the current fund divided by the total share of the fund. Simply put, it's how much each share is worth. So there is another word, cumulative net value, which refers to the sum of dividend performance since the establishment of the fund unit. In other words, it is the accumulated income since the establishment of the fund.
We usually use the accumulated net value to observe the historical performance in the process of fund operation, but it should be noted that the accumulated income displayed on the fund page is the money earned by investors after purchasing the fund.
If we can see the fluctuation of the net value over a period of time, we can calculate the income of the fund.
Then let's talk about the method of dividends. When we apply for a fund, we always jump out of an option, cash dividend or dividend reinvestment. Cash dividend means giving you cash directly and putting it into your bank account, and dividend reinvestment means reinvesting the dividend as the principal.