Yes, the operation mode of the fund belongs to compound interest investment, and the income obtained by the fund will become part of the principal. As long as the fund has income, the subsequent profits and losses of the fund are generated on the basis of gains or losses.

Compound interest means that every interest is added to the principal, and then the next operation continues to generate interest, which is also commonly known as "rolling interest". Stocks, funds and other investments are all compound interest, and time deposits are generally compound interest.