The ratio of stock market value to fund net value cannot accurately represent the fund position. The ratio of stock cost to net value after deducting valuation appreciation is more accurate. In this concept, the stock is calculated at cost, and the net value is deducted from the valuation appreciation. This algorithm is equal to the position calculated by the ratio of stock cost to stock cost and available liquidity, which contains the real meaning that the funds available for the fund in the short term are also included (the difference between bank deposits and various receivables and payables), reflecting the overall fund situation at the time of disposal. This should be a more accurate and comprehensive position calculation method.
At present, according to the requirements of the CSRC, stock funds cannot be lower than 60% of stock positions and cannot be higher than 95% of stock positions. Therefore, in the current situation of unilateral decline in the stock market, the net value of equity funds has fallen even more. Because you must keep more than 60 stock positions. On the other hand, hybrid funds are relatively flexible and can switch positions back and forth between bonds and stocks. The risk is relatively small.