(1) interest income
The interest income of the fund includes two situations:
First, when the fund operates, the fund management company reserves a certain proportion of cash according to the regulations of the relevant management company in case investors redeem the share of the tomb gold at any time. The proportion of cash retained by funds in different countries and regions varies according to the investment strategy of funds. Generally speaking, the funds in Taiwan Province Province must be kept at 5% cash, which will generally be deposited in banks or other financial institutions, so that there will be certain interest income every once in a while. In addition, if the capital market is in a downward trend, fund managers may temporarily hold some cash for the sake of protecting investors.
(II) Dividend income
The dividend income of the fund refers to the dividend income obtained by the investment fund from the company by purchasing the shares issued by the joint-stock company in the primary market or the secondary market by virtue of its shareholder status.
Dividends generally have two forms: cash dividends and stock dividends. Cash dividends, also known as dividends, can directly get cash recipients; Stock dividends, also known as bonus shares, are shares given to shareholders by listed companies in a certain proportion. For listed companies, it is only a change in the internal structure of their own rights and interests, and no cash is needed. For investors, if the stock does not fall in proportion in the secondary market, it can still get income.
(3) Capital gains
The price of any security will fluctuate due to the supply of funds. If a fund can buy securities at a lower price and sell them at a higher price, the difference is called capital gain (note: the change of securities price here is entirely caused by the supply of funds, excluding the influence of its intrinsic value.
capital appreciation
The capital appreciation of funds refers to the appreciation of fund assets purchased and held by investment funds for various reasons. For example, if the fund invests in stocks, the value of the stocks will increase and the price will also rise when the stock issuing company gains profits but has not yet distributed them. At this time, the profit from selling stocks is capital appreciation. The difference between capital appreciation and capital gain is that capital appreciation is due to the increase of the intrinsic value of assets held by funds, while capital gain is due to the influence of the relationship between supply and demand of funds.