Fund valuation and fund net value are important components of investment funds. Investors can decide the amount and allocation of funds they hold based on fund valuation and past fund net value, and they are also part of the fund. Value reflection, what is the difference between fund valuation and net value? Let’s take a look today.
1. Essentially different
Fund valuation refers to the process of calculating and evaluating the value of fund assets and liabilities based on fair prices to determine the net asset value of the fund and the net value of the fund shares.
The net value of a fund unit is the ratio of the current total net assets of the fund to the total shares of the fund.
2. Market functions are different
Fund valuation is the net value of fund shares, which is the basis for calculating the subscription and redemption amounts of most funds. Because it is related to the interests of fund investors, the fund The calculation of the net value of shares requires accuracy and caution.
The net asset value of the fund varies from country to country. Generally, the fund manager calculates and announces the net asset value of the fund on every working day and at the end of each month.
3. Different calculation methods
Calculation method of fund valuation: The consistency of valuation method means that the fund uses the same valuation method when valuing assets.
Calculation method of fund net value: Fund net value calculation is divided into known price and unknown price.
The former is based on the closing price of the previous trading day, the fund manager calculates the total financial assets owned by the fund divided by the total number of fund units sold; the latter is based on the closing price of the day. To calculate the net asset value of fund units. The price of unit funds is usually known the next day.
That’s all the above about the difference between fund valuation and net value. I hope it will be helpful to everyone. Warm reminder, financial management is risky, so investment needs to be cautious.