The income of index funds comes from the price fluctuation and dividends of investment targets, which is reflected in the fluctuation of index funds' own net value. The income calculation formula of index funds is the same as that of general funds, which mainly depends on the net value of index funds at the time of subscription/redemption, dividend distribution and various fund fees charged at the time of subscription/redemption.

Index fund income calculation formula:

Share = investment amount ×( 1+ subscription rate) ÷ net value on the day of subscription+interest.

Income = net unit value on redemption date ××( 1- redemption rate)+dividends-investment amount.

Types of index funds:

1. closed index fund. Can be traded in the secondary market, can not purchase, redemption.

2. Ordinary open index funds. You can't trade in the secondary market, but you can purchase and redeem it.

3. index ETF fund. ETF can not only be traded in the secondary market, but also be purchased and redeemed.

4. index LOF fund. LOF can be traded in the secondary market, and can also be purchased and redeemed.