Previously, a friend asked: "Does the net value of high means that it has risen too much and is too expensive, so you can't buy it?" In fact, this is a misunderstanding of the net value of fund .
1. Net value is not an indicator to measure whether the fund is expensive or cheap
Net value is simply the price of each fund, but it is not an indicator to measure whether the fund is expensive or cheap.
fund net value has two main functions, one is to confirm shares. In other words, when you buy a fund with a net value of 1,000 yuan, you have bought 1,000 funds.
Another is used to understand the rise and fall of the fund. For example, if the fund has increased from net value of 1 to 1.5, then we can know that its increase is 50%.
2. The return has nothing to do with the size of the net value, but is related to the increase or decrease and the total investment
Some friends think that the higher the net value, the greater the risk, and the more difficult it is to rise, and the lower the net value, the greater the room for growth. Actually, this is wrong.
In the book " Interpretation of Fund ", Ji Kaifan said: "Returns are only related to the total investment amount and the rise and fall ratio of unit funds, and have nothing to do with the net value and the amount of share." How do you understand the sentence
? Let's take a look one by one.
1, the rate of rise and fall
0, Ji Kaifan gave this example in the book to help us understand why returns are related to the rate of rise and fall.
Assume that the investment strategies, stock positions, fund managers, etc. of the two funds are the same.
only has a different net value. Fund A's net value is 1.5 and Fund B's net value is 1.1.
uses 10,000 yuan to invest in these two funds, fund A can buy 6,667 shares, fund B can buy 9,091 shares.
A year later, Fund A rose 10%, and its net value reached 1.65; Fund B also rose 10%, and its net value reached 1.21.
Then the total value of Fund A is 6667×1.65=11,000 yuan; while the total value of Fund B is 9091×1.21=11,000 yuan.
In other words, whether it is Fund A or Fund B, the sum of the principal and returns we get in the end is the same, 11,000 yuan, and we all make 10%.
2, Total investment
In the book "Interpretation of Funds", the author Ji Kaifan also talked about another factor affecting returns, that is, the total investment. To put it more clearly, the total assets of the fund.
Because net value is obtained by dividing the total assets of the fund by the total shares of the fund.
If we assume that a fund has no new subscription and no redemption, that is, the total investment amount is the same at the beginning, let the fund manager operate.
So if we look at the fund operation is good, it depends on the changes in total assets.
The total assets become more, which means you have made money.
Without new subscription and redemption, the changes in total assets are actually reflected in the changes in net value.
means that the share remains unchanged and the total assets increase, the net value will be higher; the net value will be lower if the assets decrease.
To put it bluntly, the net value of funds running well will be high, and the net value of funds running poorly will be low.
Speaking of this, we actually know that a high net value of the fund is better, which means that the fund is running well.
or above are some knowledge points about the net value of the fund. Do you understand? If you have any questions, please leave a message in the comment area and let’s discuss together.
