Fund is a financial management method with low investment threshold and relatively moderate risk. Many people regard funds as their financial choice. Some investors are curious about how fund companies make profits, so how can fund companies make profits?

How do fund companies make profits?

The profit mode of fund enterprises is to collect management fees. China's Public Offering of Fund can't share the fund profits with investors, but can only get them through management fees. The fund management fee is deducted by the fund manager, and the management fee of the day is generally recorded according to the net asset value of the previous day. The calculation method of management fee is as follows: annual interest rate of H = H =Ex management fee ÷ original days, H is the daily fund management fee, E is the net asset value of the previous day, and the fund management fee is calculated daily and paid on time.

How to judge the profitability of the fund?

1. Sustainability of main performance: As a medium-and long-term investment and financial management method, the Fund should pay attention to its long-term development trend and performance statement;

2. Effective ratio of risk and return: the essence of investment is the effective ratio of risk and return, and the net growth rate is only the superficial reflection of fund performance appraisal. To comprehensively comment on the main performance of a fund, it is also necessary to consider the risks undertaken by investment funds;

3. The performance of other similar funds in this enterprise: the overall performance is balanced and excellent, which shows that the performance of the fund is not due to some special factors, but only because the company has established a careful and meticulous investment management plan and steps, and the overall strength of the elite team is strong and harmonious, making the performance repeatable.

This article mainly talks about how fund companies make profits. The content is for reference only.