From the essence of the fund, the fund is not compound interest, but from the operation mode of the fund, the fund is compound interest investment, and the fund income is determined by the rise and fall of the fund net value. When the net value of the fund rises, the income generated by the fund becomes part of the principal of the fund, so the fund operates in a compound interest manner.

Compound interest, commonly known as "rolling interest", is generally used for time deposits, which means that every interest is added to the principal, and then the next operation continues to generate interest.