Fund is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits. To put it bluntly, experts help you manage your money. Buying an open-end fund can make a profit in the following three ways: 1. Net value growth: the net value of fund units increases due to the appreciation of stocks or bonds invested by open-end funds or the acquisition of dividends, bonuses, interest, etc. After the net value of fund shares rises, the difference in net value obtained when investors sell fund shares is the gross profit of investment. The real investment income is the gross profit after deducting the subscription fee and redemption fee when buying a fund. 2. Cash dividend income: According to national laws and regulations and the provisions of the fund contract, the Foundation pays dividends regularly. The cash bonus you get is also an integral part of your profit. 3. Dividend reinvestment income: If investors choose dividend reinvestment, the fund shares (rather than cash assets) held by investors will increase after dividends.
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