There are many kinds of fund net worth. As an investor, we need to clear the classification of fund net worth, so that we can clear it in our mind. Here is a brief introduction to several categories of net fund value and their differences.
We often see that funds have different forms of net value, such as net value and cumulative net value. What's the difference between them.
The reason why funds have different net values is that the funds themselves pay dividends. If the funds do not pay dividends, these kinds of net values are usually equal. However, if the fund pays dividends, there will be several different net values of the fund. Generally, there are three types of net worth.
1. Unit net value: It refers to the current net value of the fund, which refers to the market value of the stock behind a fund;
2. Accumulated net value:这是把基金分红考虑在内的净值，累计净值=单位净值+历史分红金额;
3. Accumulated net value of reversion: The accumulated net value of each fund dividend is set at dividend distribution and then invested.
The difference between the cumulative net value and the cumulative net value of rights recovery lies in the treatment of fund dividends. The cumulative net value is to treat the fund dividends as cash, and the cumulative net value of rights recovery is to reinvest the fund as dividends.
