Many novice investors do not know whether the higher the net value of the fund is, the better or the lower the better. The following is a brief explanation of this problem for everyone, hoping to remove your doubts.
Many investors have this question: Is buying a fund the better if the net value is lower? For example, for two funds, one has a net value of 3 yuan and the other has a net value of 1 yuan. Is it more cost-effective to buy the fund with a net value of 1 yuan?
Let's take a look at what the net fund value represents. The net fund value represents the market value of the assets held behind a fund share. For example, the net value of the CSI 300 Index Fund is the market value of the stocks held by each CSI 300 Index Fund.
For an index fund with a net worth of 3 yuan, each fund share will hold a stock with a market value of 3 yuan. If you buy an index fund with a net worth of 300 yuan, you will hold 100 fund shares, and each fund share will hold a stock market value of 3 yuan.
For an index fund with a net worth of 1 yuan, each fund share will hold a stock with a market value of 1 yuan. If you buy an index fund with a net worth of 300 yuan, you will hold 300 fund shares, and each fund share will hold a stock market value of 1 yuan.
So, We can see that the net value of the fund has no impact on the investment value of the index fund. The investment value of the index fund is mainly determined by the valuation.
