I. Investment income
The investment income of a fund refers to the capital income obtained by investors during the holding period of the fund. These gains usually come from securities trading in the fund's portfolio. Investors holding fund shares actually participate in the investment of securities in the fund portfolio and share the benefits of these investments. Under normal circumstances, the securities in the fund portfolio are selected and managed by professional fund managers, so the fund has higher asset allocation and risk control ability than individual independent investment.
Second, cash dividends.
In addition to capital gains, fund holders can also get income through cash dividends. Cash dividend refers to the process of converting fund income into cash and distributing it to all fund holders. Under normal circumstances, the fund company will distribute a part of the fund's net income to investors according to a certain proportion. This means that even if the securities in the fund portfolio do not realize the income, the fund holders can get part of the income through cash dividends.
Third, the net value appreciation.
The net appreciation of a fund refers to the income gained by investors who hold fund shares due to the changes in securities prices in the fund portfolio. Fund net value is usually published daily, and fund holders can adjust their investment strategies according to the daily published fund net value.
To sum up, the fund's holding income mainly includes investment income, cash dividends and net value appreciation. The income and risk of the fund coexist, so when choosing a fund, you need to evaluate and choose according to your risk tolerance and investment objectives. Investors can make wise investment decisions by studying the fund portfolio and the historical performance of fund companies.