Fund income is the part of fund assets that exceeds their own value in the process of operation. Specifically, fund income includes dividends, bonuses, bond interest, price difference between buying and selling securities, deposit interest and other income. (1) dividend: it is the income of the fund from the distribution of the company's net profit due to the purchase of the company's shares. Generally speaking, there are two forms of dividend distribution to shareholders: cash dividend and stock dividend. As a long-term investor, the main goal of the fund is to obtain long-term stable returns for investors, and dividends are an important part of the fund's income. The dividend of the invested stock is an important criterion for the fund manager to choose the portfolio. (2) Dividend: refers to the income of the fund from distributing the company's net profit due to the purchase of the company's preferred shares. Dividends are usually agreed in advance according to a certain proportion, which is the main difference between dividends and bonuses. Like dividends, dividends also constitute an important part of investors' income, and the level of dividends is also an important criterion for fund managers to choose investment portfolios. (3) Bond interest: refers to the interest that the fund assets get on a regular basis because they invest in different kinds of bonds (government bonds, local government bonds, corporate bonds, financial bonds, etc.). China's "Interim Measures for the Management of Securities Investment Funds" stipulates that the proportion of funds investing in government bonds shall not be less than 20% of the fund's net asset value. Therefore, bond interest is also an indispensable part of investment return. (4) The price difference between buying and selling securities: refers to the price difference income formed by the investment of fund assets in securities, which is also commonly called capital gains. (5) Deposit interest: refers to the bank deposit interest income of fund assets. This part of the income only accounts for a small part of the fund's income. Because open-end funds must be ready to pay the fund holders' redemption applications at any time, they must keep some cash in the bank. (6) Other income: refers to the cost or expense saved by using the fund assets, such as miscellaneous income such as trading commission concessions obtained by the fund from securities companies due to large-value transactions. This part of the income is usually very small. Fund income should generally be distributed as follows: (1) Determine the content of income distribution. Specifically, the object of fund allocation is net income, that is, the balance of fund income after deducting expenses that should be deducted according to relevant regulations. The expenses mentioned here generally include: management fees paid to fund management companies, custody fees paid to custodians, fees paid to certified public accountants and lawyers, and start-up expenses incurred when the fund is established. Generally speaking, the net income of the fund in the current year can only be distributed if it makes up for the losses of the previous year, while the net loss of the fund investment in the current year should not be distributed. In particular, the above revenue and expenditure data must be audited and confirmed by accounting firms and certified public accountants qualified to engage in securities-related business before distribution can be implemented. (2) Determine the proportion and time of income distribution. Generally speaking, the distribution ratio and time of each fund are different. Under the premise of not violating the relevant national laws and regulations, it is usually stated in advance in the fund contract or the articles of association of the fund company. In terms of distribution ratio, relevant laws in the United States stipulate that funds must distribute 95% of their net income to investors. China's Interim Measures for the Management of Securities Investment Funds stipulates that the proportion of fund income distribution shall not be less than 90% of the fund's net income. In the allocation of time, the fund should allocate income at least once a year.