Fund income has two meanings, one is the income obtained by fund management companies from operating fund assets. The second is the income obtained by fund holders from investing in fund securities. The following is the calculation method of fund income compiled by Bian Xiao, welcome to read!

What is the calculation method of fund income?

Net growth income: Net growth income is the most common way to calculate fund income. Investors calculate income according to the difference between the net value when buying fund shares and the net value when selling them. The formula for calculating the rate of return is (net change/net value at the time of purchase) x 100%.

Dividend income: If the fund holds assets in the form of dividends or interest payments such as stocks or bonds, investors can calculate the income from these dividends or interest payments.

Capital gain: If the price of the fund purchased by the investor is higher than the purchase price at the time of selling, the investor can calculate the gain brought by the difference.

Income from dividend reinvestment: If investors choose to reinvest dividends in the fund, they can calculate the income from the extra share of dividend reinvestment.

What are the more important skills in fund operation?

Investment objectives and risk management: know your investment objectives and risk tolerance, and choose the fund that suits you. Set a reasonable investment target, and adjust the investment portfolio and allocate assets according to the target.

Choose excellent fund managers and fund companies: the experience and ability of fund managers have an important impact on the performance of funds. Choose fund managers with good performance and clear investment strategy and fund companies with good reputation.

Diversified investment: Diversified investment in different asset classes, industries and regions to reduce the risk of a single investment. Adjust asset allocation and rebalance assets in a timely manner according to market conditions and investment objectives.

Regular fixed investment: adopting fixed investment strategy can smooth market fluctuation and reduce the influence of market fluctuation on investment results. Regular fixed investment can also make better use of the average cost effect.

Track the market and fund performance: track the market dynamics and fund performance in time, and understand the changes of fund portfolio and the adjustment of fund managers. This helps to make more informed investment decisions.

Long-term investment: fund investment is usually a long-term investment, which requires patience and firm belief. Avoid frequent trading, focus on long-term investment and pay attention to long-term growth potential.

In-depth research and information collection: deeply understand the investment target and market situation, and conduct sufficient research and information collection. Establish your own investment decision-making ability, not relying on a single source of information.

Pay attention to the fund cost: investigate the fund cost structure, including management fee, subscription fee, redemption fee, etc. Choose a fund with reasonable expenses to avoid the impact of high expenses on investment income.

The meaning of fund income

(1) dividend: it is 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.

Fund income

(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.

(3) Bond interest: refers to the interest that the fund assets get on a regular basis because they invest in different kinds 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 called capital gains.

(5) Deposit interest: refers to the bank deposit interest income 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.

How to calculate the fund income?

Folding calculation formula; Income = fund net value of the day × fund share ×( 1- redemption fee)-subscription amount+cash dividend;

Rate of return = income/subscription amount ×100%;

The calculation method of fund income is: fund share = subscription amount multiplied by (1- subscription rate)/fund net value on the subscription day;

Income = fund share multiplied by the net value of the fund on the redemption date multiplied by (1- redemption rate)+cash dividend during the period-subscription amount.

What everyone needs to pay special attention to here is that if the dividend payment method of the fund is dividend reinvestment, you need to check the fund share in the fund account. The fund income mentioned above refers to the net value of the fund when buying the fund. The current net fund value minus the net fund value at the time of purchase multiplied by the fund share is the gain (loss). Finally, we should know that the accumulated net value does not accurately reflect the fund's income, because the fund can choose cash when paying dividends, or it can choose to reinvest the dividend cash automatically. If you choose cash, you can also choose to buy it manually in a few days or months.

Principle of fund income distribution

(1) Each fund share enjoys the same distribution right;

(2) The income of the fund in the current year can only be distributed after making up the losses in previous years;

(3) If the fund investment loses money in the current period, no income distribution will be made;

(4) After the distribution of fund income, the net value of fund share cannot be lower than the face value of the fund;

(5) According to the Interim Measures for the Administration of Securities Investment Funds (hereinafter referred to as "Interim Measures"), the fund allocation shall be made at least once a year in cash; The proportion of fund income distribution shall not be less than 90% of the net income of the fund;

(6) A single fund account may not choose two dividend distribution methods for the same fund at the same time; In the dividend reinvestment part, the reinvestment share is determined based on the net value of the fund share on the equity registration date.