Cumulative income and holding income are both descriptions of fund income, and they seem to have similar meanings. Many investors think that accumulated income and holding income are the same meaning, but many investors find that the accumulated income and holding income of funds are different, which makes investors very confused. Then why?

Why is the accumulated income of the fund different from the holding income?

Although the name sounds the same, the actual meaning is different. The cumulative income of the fund is the sum of all the income generated by investors since they invested in the fund, including redemption of the fund and dividends. Equivalent to total income. Fund holding income refers to the accumulation of income during the fund holding period, and holding income = the latest market value of fund holding cost. When all the shares of a fund are redeemed, the holding income of the fund will be reset to 0.

To sum up briefly, when you hold a fund, you take the holding income as the reference index of the fund's income. When you redeem this fund, the holding income of this fund will be reset to 0, and the accumulated income is equivalent to the income you have gained since you started to purchase this fund.