Fund managers generally rely on us to extract a certain proportion from the management fee of purchasing funds, so the size of the fund determines the salary of the fund manager. At present, the investment direction of public securities investment funds in China is securities financial assets, which is also the way for funds to make money. Cash, bank deposits, bonds and stocks are the main investment directions.

For example, the money fund, the way to make money is the interest income of bank deposits and the payment of short-term bond maturity income.

There may be three ways for bond funds to make money, namely, interest income due to bonds they eat, trading income due to fluctuations in the bond market, and income from insufficient stock investment. The main way for stock funds to make money is to invest in stocks, and realize income through stock price rise or dividends of listed companies.

Because of different investment directions, funds also have different income and risk characteristics. For example, the money fund is mainly based on investment agreement deposits and short-term bonds, with almost no risk, but the income will not be too high; Although stock funds make money through stocks, stocks themselves are high-risk and high-yield investment products, so stock funds also have this feature, which can not guarantee to make money, and there is also a great possibility of loss.