The fund's income includes bid-ask spread and dividend income. The difference after investors buy low and sell high and the cash after fund dividends do not need to pay personal income tax. However, if the fund buys stocks and the stocks pay dividends, the income tax will be deducted from the cash dividends.

For example, if the fund buys A shares, the current dividend distribution method of A shares is: 10, giving 2 shares; 1 means: send 2 shares for every 10 share and distribute cash bonus 1 yuan. Assuming that the fund purchased by investors holds 6,543,800 shares of a company, the cash dividend is 6,543,800 yuan, and personal income tax is paid according to the holding time of the fund.

This part of the income tax does not require investors to pay extra, but is deducted from the fund assets. After the dividend of the listed company is completed, the fund will be distributed to the fund share holders, and investors need not pay taxes when distributing this dividend.

In addition, if an investor buys an on-site fund, stamp duty is not required when the on-site fund is sold. There is no need to pay income tax if the fund on the floor has dividends.

Fund income includes the following aspects:

1. bonus: refers to the income of the fund from the distribution of the company's net profit due to the purchase of the company's shares. Generally speaking, there are two forms of dividend distribution to shareholders: cash dividend and stock dividend. As a long-term investor, the main goal of the fund is to obtain long-term stable returns for investors, and dividends are an important part of the fund's income. The dividend of the invested stock is an important criterion for the fund manager to choose the portfolio.

2. Dividend: refers to the income of the fund from distributing the company's net profit due to the purchase of the company's preferred shares. Dividends are usually agreed in advance according to a certain proportion, which is the main difference between dividends and bonuses. Like dividends, dividends also constitute an important part of investors' income, and the level of dividends is also an important criterion for fund managers to choose investment portfolios.

Fund income

3. Bond interest: refers to the interest that the fund assets get on a regular basis because they invest in different types of bonds (government bonds, local government bonds, corporate bonds, financial bonds, etc.). China's "Interim Measures for the Management of Securities Investment Funds" stipulates that the proportion of funds investing in government bonds shall not be less than 20% of the fund's net asset value. Therefore, bond interest is also an indispensable part of investment return.

4. The price difference between buying and selling securities: refers to the price difference income formed by the investment of fund assets in securities, which is also commonly known as capital gains.

Verb (abbreviation of verb) deposit interest: refers to the interest income of bank deposits of fund assets. This part of the income only accounts for a small part of the fund's income. Because open-end funds must be ready to pay the fund holders' redemption applications at any time, they must keep some cash in the bank.

6. Other income: refers to the cost or expense saved by using the fund assets, such as miscellaneous income such as trading commission concessions obtained by the fund from securities companies due to large-value transactions. This part of the income is usually very small.