Understanding fund-related concepts

Fund investment involves multiple core concepts such as net worth fluctuation, fund status, holdings value, and profit calculation. Understanding these terms helps you clearly grasp asset dynamics and earnings status.

Daily price fluctuation

The actual calculated difference between the net value of the stocks or bond assets held by the Fund each day and the net value increase over the previous trading day minus expenses. 

The calculation formula is: Increase/Decrease (%) = (Current latest net value - Last trading day net value) / Last trading day net value*100%.

Purchase pending confirmation of funds

According to Fund trading rules, it generally takes 4 business days from the initiation of the purchase request to the confirmation of the units (a business day excludes Singapore and fund house holidays). The requested funds are indicated as pending confirmation until the purchase request is confirmed as successful.

The sale amount to be credited (frozen shares)

Refers to the corresponding funds that have not yet arrived in the user's account after fund units are successfully sold (including any current pending orders or unconfirmed units which are frozen).

Holdings

Refer to the currently held fund units.

Unit Net Value

Refers to the value of each unit of the fund on a given day. i.e. the value of each fund unit on a given day after dividing the fund's net assets by the total number of fund units. On each trading day, the total asset value of the fund is calculated based on the market closing price of the securities invested in by the fund. The net asset value of the fund on a given day is obtained after the various costs and expenses of the fund on that day are deducted. This value is further divided by the total number of fund units transacted outside of the fund on that day to get the net value per unit.

Total fund amount

Calculation formula: Total fund amount = Subscription amount pending confirmation + Holding amount + Sale amount to be credited.

Latest gains

Calculation formula: latest gains = (net value on the corresponding date - net value on last trading day) * units on the corresponding date + cash dividends on the corresponding date.

Holding gains

Calculation formula: Holding gains = Holding amount - Holding cost

Holding amount

Calculation formula: Holding amount = Holdings * Current latest net value of the Fund

Cumulative gains

The sum of daily gains.

Key takeaways:

• Fund and unit status
  • Subscription amount to be confirmed: Funds of an initiated subscription request that have not yet been confirmed.
  • Sale amount to be credited: Funds from a successful sale that have not yet been credited.
  • Holding units: The actual number of units currently held.
• Net worth and value calculation
  • Net worth per unit: The daily value per unit, calculated by deducting fees from the fund's total assets.
  • Holding amount: Holding units multiplied by the latest net worth, representing the current total market capitalization of your holdings.
  • Total fund amount: The sum of subscription amount to be confirmed, holding amount, and sale amount to be credited, representing your total assets in the fund.
• Profit calculation
  • Daily %Chg: a measure of the daily change rate of the fund's net worth.
  • Latest profit: (Net worth on the corresponding date – Previous trading day's net worth) × Units on the corresponding date + Cash dividend on the corresponding date.
  • Holding profit: Holding amount – Cost basis, representing the total floating profit or loss since you held the fund.
  • Cumulative profit: The sum of all daily profits, representing the final total return from investing in the fund.

Disclosures

This article is for reference only and does not constitute any investment advice.