According to the above formula, the principal multiplied by the rate of return represents how much money the fund has earned. For example, a fund has made 80% profit since its establishment, that is, if investors buy from the issuance period, they will make 80% profit. For example, if you buy a fund with 10000 yuan, the income will be 8000 yuan.
What are the reasons that affect the fund's income?
The main reason is the change of fund dividends, fees and positions.
1, fund dividends, for example, if investors make cash dividends, their share will be reduced, and their daily income will be reduced due to the impact of cash dividends; If you choose to reinvest in dividends, the dividends you hold will increase and the income will increase.
2. Handling fees and fund transaction fees will also directly affect the income of the fund, such as management fees, redemption fees and subscription fees.
3. Changes in positions, because changes in fund positions will have a direct impact on fund shares. For example, the increase or decrease of funds will also have a certain impact on the net value of funds on that day.