Some investors think so. Low net fund value means that it is cheaper, you can buy more fund shares, and the fund has more room to rise. For a high-net-worth fund, he is worried that it will rise to the top, and will it be called back next? This idea is actually confusing funds with stocks.
For stocks, the stock price is too high, and it is really easy to pull back, because the overall value of listed companies may not keep up with the stock price rise, and the stock price has a bubble, which is likely to pull back.
However, unlike stocks, funds allocate many stocks and other assets in a decentralized way. When a stock held by a fund rises, the fund manager can sell the stock and buy an undervalued stock again. At this time, the net value of the fund will rise, but the fund has sold overvalued stocks, so we don't have to worry about the callback risk of overvalued stocks.
Therefore, a high-net-worth fund can show that the fund manager has strong ability and manages the fund well, which will increase the net value of the fund. Funds with low net worth may not necessarily hold cheap stocks, or it may be that the fund has not been issued for a long time, or the fund has just paid dividends, or the fund itself has poor performance and its net worth has not increased much.
Generally speaking, the net value of the fund represents the historical performance of the fund, and the fund with low net value may not have investment value. If investors really want to choose a fund according to its net value, it is better to look at the accumulated net value of the fund and the net value growth rate at a certain stage.