For long-term investors, it is very meaningful to share the proceeds, because it can bring them higher returns. For example, if you hold a share of a fund, the share of the holder will increase when the profits generated by the fund are converted into shares. In the long run, this is very beneficial to investors' returns, especially in the case of good market conditions, investors can get more income through the appreciation of assets.
Fund managers should adopt different strategies according to the operation of the fund when sharing the proceeds from the fund. Under normal circumstances, if the operation of the fund is relatively stable, the manager will set a higher proportion of the carried-over income as shares in order to expand the scale of the fund; However, if the fund operation fluctuates, the manager will set the ratio lower to control the risk. In a word, carry-over income sharing is a way of investment distribution, which can make investors get more average and higher income.