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What does compound interest mean?
Fund compound interest refers to the act of converting fund income into holding shares and increasing investors' income.

1, fixed investment

The fixed investment of the fund refers to investing in the designated open-end fund at a fixed time and amount, in which the income of the fixed investment plan is compound interest effect, and the interest generated by the principal is added to the principal to continue to derive income. Through the effect of rolling interest, for example, the income generated by an investor's fixed investment in a fund is 65,438+00000 yuan, which will be added to the principal of the investor's fixed investment for the next fixed investment operation, bringing more income.

2. Dividend reinvestment

Some funds pay dividends through dividend reinvestment, that is, the dividends are converted into shares according to the net market value of the fund and then distributed to investors' accounts. This method will increase the share of investors' holdings and produce the effect of compound interest when the fund's net value rises.