When we invest in funds, the rate of return of funds is a matter of great concern to us. In the breakdown of fund profit and loss, there is a column called position yield. What does this position return mean and how is it calculated?

There are two main methods to calculate the rate of return on positions in the market, namely, diluted cost method and average cost method. These two methods are only different in calculation methods, and there is no difference between them. Only when the position fund is partially redeemed, the calculation results of the rate of return are different, which will not affect the actual assets of the fund and the income of investors. Let's know them one by one.

Dilution cost method

Partial redemption after fund profit: the unit price of fund cost decreases and the position yield increases.

If you buy a fund for 1 0,000 yuan, when the fund rises by 20%, the principal plus income is 1, 200 yuan. If half is redeemed at this time, the redeemed 600 yuan will calculate the principal first, and the remaining 600 yuan, 400 yuan, 200 yuan and positions will become 50%.

Average cost method

Partial redemption after the fund is profitable: the unit price of the fund cost remains unchanged, and the rate of return on remaining positions remains unchanged.

If you buy a fund for 1 0,000 yuan, when the fund rises by 20%, the principal plus income is 1, 200 yuan. If half is redeemed at this time, the redeemed 600 will include 1 1,000 yuan. Of the remaining 600 yuan, 500 yuan is the principal, 1 1,000 yuan is the income, and the position income will be 20%.

Different fund platforms may use different methods to calculate the holding income. For example, Tian Tian Fund now uses the diluted cost method.

Of course, some platforms will introduce two income calculation methods, and investors can switch freely.