Calculation method of subscription fund income:

The calculation of income share is divided into external deduction method and internal deduction method:

Internal deduction method:

Shares = Investment amount × (1 - Subscription rate) ÷ Net value on the day of subscription + interest

Income = Net value of the unit on the day of redemption × Share × (1 - Redemption rate ) + dividend - investment amount

External deduction method:

Share = investment amount × (1 + subscription\subscription rate) ÷subscription\subscription day net value + interest

Income = Net value of the unit on the day of redemption The amount purchased through the external deduction method will be slightly larger, which is more beneficial to fund investors.

Use this method to calculate your daily profits. After purchasing a fund, if you find daily calculations troublesome, you can use Caidao.com's fund account book for management, which can automatically calculate daily income and rate of return.

Extended information

Dividends: The fund is entitled to the distribution of the company’s net profits due to the purchase of the company’s stocks. Generally speaking, companies distribute dividends to shareholders in two forms: cash dividends and stock dividends. As a long-term investor, the fund's main goal is to obtain long-term, stable returns for investors, and dividends constitute an important part of the fund's income. The amount of dividends from the stocks invested is an important criterion for fund managers to select investment portfolios.

Dividends: refers to the fund’s income from the distribution of the company’s net profits due to the purchase of the company’s preferred equity. Dividends are usually stipulated in advance based on a certain proportion of fund income, which is the main difference between dividends and dividends. Like dividends, dividends also form an important part of investors' returns, and the level of dividends is also an important criterion for fund managers to select investment portfolios.

Bond interest: refers to the interest earned on a regular basis by fund assets investing in different types of bonds (treasury bonds, local government bonds, corporate bonds, financial bonds, etc.). my country's "Interim Measures for the Management of Securities Investment Funds" stipulates that the proportion of a fund's investment in government bonds shall not be less than 20% of the fund's net asset value. It can be seen that bond interest is also an indispensable component of investment returns.

The spread between buying and selling securities: refers to the spread income formed when fund assets are invested in securities, usually also called capital gains.

Deposit interest: refers to the interest income from bank deposits of fund assets. This part of the income represents only a small component of the fund's income. Open-end funds must keep a portion of their cash in the bank because they must be ready to pay redemption requests from fund holders.

Other income: refers to the cost or expense savings caused by the use of fund assets, such as the transaction commission discounts the fund receives from securities firms due to large transactions and other miscellaneous income. This amount of income is usually small.