The income of the fund can become a part of the principal. The rise and fall of the fund the next day is based on the net value of the previous day, which will include the income of the fund, so the fund is calculated according to compound interest.

Although it cannot be said that the fund is calculated according to compound interest in essence, the fund operates according to compound interest mode. Compound interest means that every interest is added to the principal and then the next operation is carried out.