Fund income should generally be distributed as follows:

(1) Determine the content of income distribution. To be precise, the object of fund distribution is net income, that is, the balance of fund income after deducting expenses that should be deducted in accordance with relevant regulations. The fees mentioned here generally include: management fees paid to the fund management company, custody fees paid to the custodian, fees paid to certified public accountants and lawyers, start-up fees and other expenses incurred when the fund is established, etc. Generally speaking, the net income of the fund for the current year should first make up for the losses of the previous year before the income distribution of the current year can be carried out; if the fund investment has a net loss of the year, income distribution should not be carried out. It should be noted in particular that the above income and expense data must be audited and confirmed by an accounting firm and certified public accountant qualified to engage in securities-related business before distribution can be implemented.

(2) Determine the proportion and time of income distribution. Generally speaking, the distribution ratio and time of each fund are different, which are usually stated in advance in the fund contract or the articles of association of the fund company on the premise that it does not violate relevant national laws and regulations. In terms of distribution ratio, relevant U.S. laws stipulate that funds must distribute 95% of net income to investors. my country's "Interim Measures for the Management of Securities Investment Funds" stipulates that the fund income distribution ratio shall not be less than 90% of the fund's net income. In terms of distribution time, the fund should distribute income at least once a year.

(3) Determine the objects of income distribution. Whether it is a closed-end fund or an open-end fund, the income distribution targets are investors who hold fund units on a specific date. Fund management companies usually need to stipulate the last equity registration date for obtaining income distribution rights. Only investors who are listed on the fund holder list after the end of trading on this day are entitled to enjoy this income distribution.

(4) Determine the distribution method. There are generally three ways: ① Distribute cash. This is the most common form of fund income distribution. ②Allocate fund units. That is, the net income that should be distributed is converted into new fund units of equal amounts and given to investors. This form of distribution is similar to what is commonly referred to as "bonus shares," which actually increases the total capital and size of the fund. ③Not allocated. Neither fund units are given away nor cash is distributed, but the net income is included in the principal for reinvestment, which is reflected in the increase in the net asset value of the fund units. my country's "Interim Measures for the Management of Securities Investment Funds" only allows the use of ① form. Taiwan Province of my country uses a combination of ① and ③ distribution methods, while the most commonly used methods in the United States are ① and ②.

(5) Determine the payment method for income distribution. This is related to the issue of how investors receive their share of the profits. Generally speaking, when paying cash, the custodian will notify the fund holder to collect it in person or remit it to the holder's bank account; in the case of allocating fund units, the designated securities company will transfer the allocated fund units The shares are printed on the investor’s fund unit holding certificate.

It should be added that although funds diversify risks through portfolio investment, they can usually enable investors to obtain higher returns (higher than bonds) with lower risks (lower than stocks). However, funds The manager does not make any guarantees about the future returns of the fund. In fact, some funds may experience extremely low returns or even losses due to unsuccessful managers.