After determining the type of fund you bought, the next question is how to choose a fund.
Because many friends look at fund net value just for performance, and you will also find that many funds will have range performance displays, such as the latest January, March, June, 1 year, 2 years, 3 years, etc.
We generally have to look at performance for 2-3 years or even longer, because the performance of the fund less than one year cannot be explained too much. The good performance may be because the short-term market style happened to meet.
The best time span to see fund performance must have at least one bull and bear cycle, so that you can see the operation of a fund more objectively.
and performance is precisely based on the result of net value calculation, so We must first understand the net value of the fund .
Newly-entered fund novices are often stumped by various nouns, and there are also problems with the net value of the fund. For example, many people can't tell the difference between "unit net value" and "accumulated net value".
Today, Let’s talk about the unit net value, cumulative net value and valuation of the fund at one time? What's the difference? Which indicator should I look at when choosing a fund?
1. Unit net value and cumulative net value
The unit net value and cumulative net value of the fund have the word "net value", so let's first understand what net value is.
The net value of the fund, for example, is like buying vegetables in the vegetable market, and the weight of the vegetable basket must be deducted in advance. The official definition of fund net value is the total assets of the fund minus total liabilities.
Unit net value means total assets minus total liabilities and then divided by the total number of fund shares. That is, the net weight of a vegetable in a basket of chicken feathers you bought. The net value of newly established funds is 1 yuan. When we subscribe to a new fund, we can buy 1,000 funds after deducting the subscription fee.
If after a period of time, the unit net value becomes 1.31 yuan, which means that the increase of the fund is 31%, (1.31-1)/1=31%. If sold now, the market will trade at 1.31 yuan. After deducting the original purchase cost, investors will earn 0.31 yuan per share, which is equivalent to earning 31% of the profit (for example, ignore the redemption fee, etc.) .
Fund unit net value is the basis of trading and is also the basis for fund subscription and redemption.
cumulative net value , which is the accumulated dividends and split amounts since the establishment of this fund are accumulated on the basis of unit net value. In other words, the weight of the leaves dropped by this chicken feather vegetable in history has accumulated. The leaves dropped by the chicken feather vegetable are useless, but the past dividends and splits of the fund can reflect the historical performance of the fund.
For example, suppose the unit net value of a certain fund on a certain day is 1.16 yuan. If each fund has been dividends of 0.3 yuan since the establishment of the fund, then the cumulative net value of this fund is 1.16+0.3, which is equal to 1.46 yuan.
That is to say, the cumulative net value = unit net value + dividend.
1 fund unit net value update frequency, and I will also like to share with you the science. The new fund is updated once a week during the closed operation period, and the normal unit net value is updated every night. For example, the China-Europe Wealth APP will be updated successively at 7 pm on that day, the net value of the funds under the China-Europe will be updated one after another.
However, institutions will occasionally delay updates, but it is basically no problem for everyone to look at the net value early the next morning.
2. How to correctly view the net value of the fund?
When buying a fund, many friends will feel "fear" when they see funds with a unit net value of 3 yuan, 5 yuan, or even higher. If the net value is high, will they not rise anymore and are not worth buying?
is actually not the case. The meaning of the net value of the fund is completely different from the stock price. A high stock price means that the valuation may become more expensive. A high net value of the fund means that the fund has accumulated a higher return since its establishment, reflecting the effect of the fund's past investment operations.
Therefore, when faced with funds with high cumulative net value, you should not be discouraged. On the contrary, what you may discover is a fund with excellent long-term performance in the past.
For example, Gelan's China-Europe Healthcare Hybrid A was established on September 29, 2016. As of December 31, 2020, the fund's cumulative net value was 3.446. In more than three years, the fund's cumulative net value has increased by 262.87%.
(Data source: China Europe Medical and Health Mixed Securities Investment Fund 2020 Annual Report)
Many funds with high cumulative net value. If the investment management of the fund manager and fund manager has been doing well, the net value can continue to rise.
If a fund has low net value, it may be dividends or split, or it may be that it has performed poorly all the time, which does not mean that it can buy at the bottom and .
Therefore, you cannot only refer to a single indicator for purchasing a fund. The net value of the fund only indicates the overall performance level of the fund. Although it has certain reference significance for investors, it does not have a direct impact on future returns.
To purchase a fund, you should still comprehensively examine the future growth of the fund, the investment management capabilities and investment logic of the fund manager. We need to pay attention to how this fund achieved such performance and whether its investment logic can continue in the future.
3. "Intraday valuation" and valuation calculation method
After talking about net value, let’s talk about valuation. Many friends like to look at the intraday valuation of funds to judge the daily trend of funds.
First of all, everyone should be clear that this intraday valuation is not the actual net value of the fund.
Intraday valuation is the net value of some fund websites based on the fund's holdings ratio and the rise and fall of the Shanghai and Shenzhen stock markets that day. Like the stock market, it is updated in real time between 9:00 and 15:00 every trading day. Each platform has different calculation methods and different valuations. The actual net value of the fund must be based on the announcement of the fund company. Please refer to the valuation.
This intraday valuation is estimated based on publicly disclosed fund positions and index trends.
The specific investment strategy of the fund manager is unknown, but fund companies need to disclose the investment situation in each quarter and year. This holding data comes from the latest quarterly reports, annual reports, etc., that is, data as of the end of the previous quarter and the end of the year, including the top ten heavily held stocks, five heavily held bonds, and the overall position of funds.
Therefore, there will often be situations where the fund's intraday valuation is biased from the actual net value, because quarterly reports, semi-annual reports and annual reports can only represent the holdings at the time of the time and cannot represent the fund managers always holding them, which means that the current holdings may have changed. The main reference materials for real-time valuation of
are not disclosed in real-time, and there is a relatively obvious lag. During this process, the fund manager is very likely to perform normal operations such as increasing positions and reducing positions and replacing positions based on the actual market conditions. The fund's valuation does not use complete data, such as the quarterly report to the top ten holdings disclosed, which is not all the holdings of the fund, so it will naturally lead to a deviation in real-time valuation.
So don’t pay too much attention to intraday valuation, because valuation does not equal net value. Some investors always suspect that the fund manager steals it when they see that the valuation is different from the actual net value of the fund that day. This is obviously an unfounded guess.
intraday valuation is just to provide you with some reference. It is not very meaningful to pay too much attention, and it should be based on the actual net fund value.
4. Objectively look at the phenomenon of skyrocketing and plummeting in the net value of funds
Some funds will experience "splashing and plummeting" in certain specific time periods. If the funds they hold surge, everyone will naturally smile, but if it is a plunge, investors are likely to be in a bad mood.
Whether it is a surge or a plummeting one, the most important thing is that everyone should understand the reasons behind the abnormal movements and make an objective judgment on the fund's performance. There are several reasons for large fluctuations in funds:
1), huge redemption
When a fund encounters a huge redemption, for example, the redeemed fund assets account for more than 80%, the fund may be liquidated, so try not to buy funds with a large proportion of holdings of a single investor; , choose funds with larger fund size, so the possibility of huge redemption will be reduced.
2), Black swan event
Due to policy influence or macro-environmental changes, such as last year's sudden outbreak of the epidemic, when such black swan event comes, the market often fluctuates violently. Of course, the fund itself may also step on the wrong side, such as the default of bonds held in bond funds, causing the bond price to be halved.
3), fund split
Sometimes fund split will also cause changes in net value, but you don’t have to worry about this situation.
For example, a fund has a net value of 1.5 yuan, which means 1.5 yuan. Now 1 part is split into 1.5 parts, and each part has a net value of 1 yuan, which means it has a net value of 1.5 yuan into 1.5 yuan, which has no impact on investors.
After the fund is split, the original investment portfolio remains unchanged, the fund manager remains unchanged, the fund shares increase, and the net value of the unit shares decreases.
. Today’s sharing is over. I believe that everyone has a deep understanding of the net value and valuation of the fund. Next issue, we will talk about the various ways of dividend distribution of funds. Don’t miss it!
Funds are risky, so you need to be cautious when investing. The above materials are not used as any legal document. The fund manager promises to manage and use fund assets with the principles of honesty, trustworthiness, diligence and responsibility, but does not guarantee the fund's profits or the minimum return. Investors should carefully read relevant fund contracts, prospectus and product information summary, etc., understand the risk-return characteristics of the fund, and judge whether the fund is in line with the investor's risk tolerance based on their own investment goals, investment period, investment experience, asset status, etc. my country's funds have a short operating time and cannot reflect all stages of stock market development. The fund's past performance does not indicate its future performance, and other fund performance managed by the manager does not constitute a guarantee of fund performance.
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