Funds directly linked to performance. According to China Literature Network, floating rate funds refer to funds whose management fees charged by fund managers are directly linked to their performance. There are two main ways to charge floating rate funds. One is that the management fee is directly linked to the fund performance, and the other is that the management fee is directly linked to the fund risk. Among them, the management fee is directly linked to the fund performance. The fund manager decides the management fee rate according to the fund income. When the fund income is good, the management fee will be higher accordingly. When the fund income is poor, the management fee will be lower accordingly.