Let's first understand the concept of fund net worth. The net value of the fund refers to the total assets of the fund minus liabilities, and then divided by the total share of the fund. The total assets of the fund include the value of various assets invested in stocks, bonds, money market instruments and so on. The change of fund net value is closely related to the profit and loss of fund portfolio. When the price of assets in the fund portfolio rises, the net value of the fund will also rise. Conversely, when the asset price in the portfolio falls, the net value of the fund will also fall accordingly.
Fund valuation refers to the transaction price of the fund in the secondary market. Fund valuation is usually estimated by fund companies or third-party institutions according to the real-time market value of fund portfolios. The accuracy of fund valuation is very important for investors, because investors need to use fund valuation as the basis of transaction price when buying and selling fund shares. The calculation method of fund valuation can be adjusted according to different fund types, such as stock funds, bond funds and money funds.
Sometimes we will find that there is a big gap between the valuation and net value of funds in the market. This is mainly due to the following reasons:
The update frequency of fund net value is different from that of fund valuation. The net value of the fund is usually calculated according to the daily closing price, and the fund valuation may be adjusted in real time according to the fluctuation of market conditions. When the market fluctuates violently, there may be a big gap between the fund valuation and the fund net value.
Fund valuation is affected by market supply and demand. When investors show great concern about a fund or demand exceeds supply, the transaction price of the fund may be higher than the net value of the fund; On the contrary, if the investor's demand for a fund is low, the transaction price of the fund may be lower than the net value of the fund.
The trading mechanism of the fund may also lead to the gap between the valuation and the net value of the fund. For example, in the trading of floor funds, fund shares are bought and sold through floor trading, and the calculation of fund net value is based on the real-time market value of fund portfolio. In the case of low trading activity, the valuation of the fund may be affected by the bid-ask spread, and there will be a big gap with the net value of the fund.
In the face of the gap between the fund's net value and valuation, how should investors respond? Investors should understand the difference between the net value and valuation of the fund and choose the fund reasonably according to their investment objectives and risk tolerance. Investors can judge the investment value of the fund by regularly paying attention to the changes in the net value and valuation of the fund. Investors can also reduce the impact of fund net value and valuation gap on investment income by diversifying their portfolios.
Fund net value and valuation are important indicators that investors need to pay attention to when choosing funds. The net fund value reflects the value of the fund portfolio, while the fund valuation reflects the transaction price of the fund in the secondary market. Although there may be a certain gap between the net value of the fund and the valuation, investors can benefit from the investment decision by understanding the reasons for the difference and reasonable investment strategies.