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Fund is an investment tool, which gains income through concentrated investment. There are four main ways for the fund to make profits: dividend income, interest income, capital income and other income.
Dividend yield
Dividend income refers to the dividend income obtained by the fund by investing in the stock market and holding stocks. Generally speaking, joint-stock companies will regularly distribute profits to shareholders, and these profits are dividend income. The rate of return of the fund is related to the dividend yield of the stocks invested.
Interest income
Interest income refers to the interest income obtained by holding bonds when the fund invests in the bond market. Bond is a loan with a fixed interest rate, and the issuer will pay interest to the bondholders as agreed. The rate of return of the fund is related to the interest rate of the bonds invested.
capital gain
Capital gain refers to the income obtained by the fund from investing in stocks, bonds and other markets and selling them. When the fund sells stocks or bonds, if the selling price is higher than the buying price, then the fund will gain capital gains. The rate of return of funds is related to the appreciation or depreciation of investment assets.
Other income
Other income includes interest income from money market funds and incentive income from some funds. For example, some foundations give bonuses to holders within a specific period of time, which can be used as part of the fund's income.
The profit modes of the fund mainly include dividend income, interest income, capital income and other income. The fund's rate of return is related to dividend yield, interest rate, appreciation or depreciation of investment assets and other incentive income. Investors can choose their own fund products according to their risk preferences and income requirements.