Does the fund sell the profit part or the principal?
The fund sells profits together with the principal, because the income generated by the fund also directly enters the principal, and then continues to generate income, so the income of the fund is a compound interest model. After the fund is sold, sell the share, and then calculate the final fund according to the share and net value.
The income of the fund mainly comes from the difference in net worth and dividends. If the fund income is generated by cash dividends, it will be paid directly to the investor's bank card on the dividend payment date; If the fund income is generated through dividend reinvestment, its income will be converted into fund share according to the net value of the fund on that day, so as to increase the holding share of investors. Only after redemption, its income and principal will be credited to the investor's account together.
If the fund income is generated by the difference in net value, before redemption, the fund income is reflected in the growth of the fund net value. After redemption, its income and principal will be credited to the investor's account together.
Depending on the type of fund, the redemption time is different. Generally speaking, monetary funds arrive within one working day; Bond funds, hybrid funds and equity funds will arrive within one to three working days; QDII funds will arrive in three to twelve working days.
After reading the above introduction, I believe everyone can have a clear understanding of whether the fund sells the income part or the principal. Selling funds is actually an art, and everything is related to your subjective understanding, not only your own choice, but also the market's own choice.