fund holding shares and holding amount are two different concepts. Some people who don’t know enough about funds may not understand these two concepts, and therefore cause some misunderstandings. For example, some people ask, why do you hold less shares of funds than the amount you hold?
The difference between the holding share of the fund and the holding amount
The holding share of the fund is how many funds it holds. The shares are the unit of measurement of the fund, and one is the smallest unit of the fund. The amount of a fund held is how much money the fund is held, or how much the fund held is worth, usually one yuan as the minimum unit. After buying the
fund, as long as you hold it and invest in without the dividend, there will be no change. Most of the funds will change. The reason for the change in the fund holding amount is naturally the rise and fall of the net value of fund . The reason why the fund's holding shares are different from the holding amount due to
is also due to the rise and fall of the fund's unit net value.
Why is the holding share of the fund different from the holding amount?
The unit net value of a fund is the price when buying a fund. It is equal to the total net assets of the fund divided by the share of the fund, or in other words, the total net assets of the fund divided by the unit net value is equal to the share of the fund.
For an investor, the total net assets of the fund held are the amount of the fund held. Dividing the amount of the fund held by the unit net value is the share.
From this formula, we can see that when the unit net value of the fund is greater than 1, the fund's holding share will be smaller than the holding amount. Because at this time, 1 yuan cannot buy a fund, similarly, the number of fund shares that can be bought for 100 yuan is definitely less than 100.
When the unit net value of the fund is less than 1, you can buy more than one fund for 1 yuan. At this time, the holding amount of the fund will be greater than the holding share.
Only when the unit net value of the fund is equal to 1, the two are still equal.
shows that the higher the share or the amount of holding a fund depends entirely on the net value of the fund unit. Since the unit net value of most funds will change after the fund is listed, the amount of the fund will also change, resulting in the phenomenon that the holding amount is inconsistent with the holding share.
If the holding share of the fund you bought is smaller than the holding amount, this is actually a good thing, because it means that the unit net value of the fund has increased after it is listed, making money for investors. The less the fund holds, the more money it earns to investors.
After the fund is listed, the fund holds more shares than the holding amount, which means that the unit net value of the fund has dropped, and the person who bought the fund will lose money.
However, not all fund holding shares are different from holding amounts, and some are the same. These funds can be mainly divided into two categories.
is money funds. The unit net value of a money fund is always 1 yuan, because the benefits it obtains in investment are distributed to investors every day, so it will not accumulate on its unit net value. According to the calculation formula, when the unit net value is 1 yuan, the holding share of the fund is the same as the holding amount.
Another type is newly issued funds. The unit net value of the newly issued fund is 1 yuan. Before it invests, the unit net value will not change. At this time, the fund's holding share is equal to the holding amount.
So, do you understand the difference between the share holding and the amount of the fund and why it is different?
