The present invention relates to a knitted fabric which can be produced at low cost and can exhibit a stable color effect, and a method of knitting such a fabric. A warp-knitted fabric (1) consists of a base (2) and ridge portions (6) formed along a knitting direction, each ridge portion (6) is composed of a top portion (3) and two side wall portions (4, 5) respectively formed at both sides of the top portion (3), and the top portion (3) and the side wall portions (4, 5) are respectively formed by chain-stitch rows formed by knitting yarns having different colors from one another. The warp-knitted fabric (1) exhibits a color effect such that the color thereof visually recognized by an observer who looks at the warp-knitted fabric (1) from a direction intersecting the knitting direction is changed in accordance with the position of the observer.