Revealing the method of calculating the increase of funds

Fund increase is an important index for investors to measure fund performance.StrippokeronlineliveIt directly reflects the profitability of the fund. This article will introduce the calculation method of the fund increase in detail to help investors better understand the return of the fund investment.

The calculation of the increase of the fund involves the net value of the fund, that is, the value of each share of the fund. The calculation formula of fund net value is as follows: fund net value = fund net asset value / fund share. The net asset value of the fund refers to the net value of all assets held by the fund minus liabilities, including stocks, bonds, cash and so on. Fund share refers to the number of funds held by investors.

The formula for calculating the fund increase is as follows: fund increase = (current net value-reference period net value) / reference period net value × 100%. Among them, the net value of the reference period can be the net value at the time of the purchase of the fund, or it can be the net value at an earlier time point.

Take a fund as an example, suppose investors bought the fund on January 1, 2020, and the net value at that time was 1 yuan; by January 1, 2021, the net value of the fund rose to 1.Strippokeronlinelive.2 yuan. So, the fund's increase in this year is: (1.2-1) / 1 × 100% = 20%.

The increase of the fund can be divided into cumulative increase and annualized increase. Cumulative increase refers to the total increase of the fund from the time of purchase to the present, while the annualized increase translates the cumulative increase into the average annual increase. The formula for calculating the annualized increase is: annualized increase = (1 + cumulative increase) ^ (1 / investment years)-1. Take the above example as an example, the annualized increase = (1 + 20%) ^ (1 / 1)-1 ≈ 18.46%.

The increase of the fund is affected by many factors, such as the market situation, the investment strategy of the fund manager, the stocks and bonds held by the fund, and so on. When choosing a fund, investors should fully understand the increase of the fund in combination with their own risk tolerance and investment objectives. At the same time, attention should also be paid to other indicators of the Fund, such as the Sharp ratio and the maximum pullback, in order to assess the performance of the Fund more comprehensively.

Fund increase calculation formula Fund increase (current net value-reference period net value) / reference period net value × 100% cumulative increase current net value / reference period net value-1 year-on-year increase (1 + cumulative increase) ^ (1 / investment years)-1

When investing in a fund, investors should fully understand the calculation method of the increase of the fund in order to better evaluate the income of the fund. At the same time, we also need to pay attention to other indicators of the fund and comprehensively analyze the performance of the fund. Through these methods, investors can invest in the fund more scientifically and maintain and increase the value of assets.