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How does the fund make money? How much investment does a fund usually need?
Source of fund income: 1. Dividend income: stock dividends or cash dividends distributed when investing in stocks of listed companies. 2. Interest income: interest income generated from investment in treasury bonds, corporate bonds, financial bonds, bank deposits and other instruments. 3. Capital gains: gains from bid-ask spreads when investing in stocks or bonds of listed companies. 4. Other income: the cost or expense saved due to the use of fund assets is included in the income. Investing in open-end funds earns money that "the net value of funds rises". Different from closed-end funds, the price after listing may be affected by the relationship between market supply and demand, resulting in a premium or discount. Generally speaking, buying an open-end fund can make a profit in the following three ways: 1. Net value growth: the net value of fund shares increases due to the appreciation of stocks or bonds invested by open-end funds or the acquisition of dividends, bonuses and interest. 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. According to China's current relevant laws and regulations, the Fund shall not guarantee profit, share losses or promise minimum income. Therefore, open-end funds cannot guarantee investment income. A fund needs more than 100 investors, and more than 5000 trillion can be established and operated.