The calculation method and understanding of the average annual increase of the fund

Friends of the investment fund must pay attention to the performance of the fund. Here, let's talk about how to calculate the average annual increase of the fund and what this indicator means to our investment decisions.

Calculation of the increase of funds

The increase of the fund, in short, is the proportion of the increase in the net value of the fund unit. To calculate the average increase in a year, we need to know the net value of the fund at each time point of the year.

First of all, we need to obtain the daily net unit value data of the fund for a year. Then, we calculate the growth rate of net worth for each day compared to the previous day, that is,Rouletteseriesdownload:

Daily growth rate = (Today's net worth-yesterday's net value) / yesterday's net value

Then, we sum all the daily growth rates in a year and divide them by the number of days to get the average daily growth rate of the fund in a year.

Average daily growth rate = (sum of all daily growth rates) / days

Finally, we use the following formula to calculate the average annual increase of the fund.Rouletteseriesdownload:

The average annual increase of the fund = (1 + average daily growth rate) ^ 365-1

In this way, we get the average increase of the fund for a year.

An in-depth understanding of the increase of the fund

After knowing how to calculate the average annual increase of the fund, we need to understand the significance of this indicator. The increase of the fund directly reflects the performance of the fund over the past year. At the same time, it can also predict the future trend to some extent.

However, we should also recognize that past performance does not represent the future. In addition, the average increase in the fund does not represent the returns of all investors, because everyone's investment time and duration are different.

Practical application

For investors, understanding the calculation method of fund increase can help us to make better investment decisions. Through the analysis of historical data, we can choose those funds with stable long-term performance and good growth.

At the same time, we can also use this indicator to compare funds. By comparing the average annual growth rates of different funds, we can find the funds that perform better.

In addition, we can also evaluate the performance of fund managers by calculating the average annual increase of the fund. If a fund manager can maintain a high average annual growth rate for a long time, then his management ability is worthy of recognition.

Matters needing attention

Although the average annual increase of the fund is an important reference indicator, there are other factors that need to be taken into account in investment decisions. For example, the risk level of the fund, asset allocation, costs and other factors need to be considered.

In addition, investors should also pay attention to whether the net value of the fund fluctuates too much when looking at the increase of the fund. Excessive volatility may mean high risk, and investors need to make choices according to their risk tolerance.

Conclusion

Through the calculation and understanding of the average annual increase of the fund, investors can make better investment decisions. But don't forget that investment is risky and you need to be careful when entering the market.