Why issue funds? Many people have some savings. How to manage these savings well, so that they can be preserved first and then increased in value, is a very important issue. At present, there are mainly the following types of social investment: bank deposits, bonds and stocks. The risks of these three investment varieties are increasing, and the benefits are also increasing. The characteristic of fund variety design is that the risk and return are between bonds and stocks. In this way, investors have one more variety to choose from when choosing investment varieties.

The income of investment funds mainly comes from two aspects: price difference income and dividends. Regarding the distribution of dividends, the specific provisions of relevant laws and regulations are: "The distribution of fund income is carried out at least once a year in cash. The proportion of fund income distribution shall not be less than 90% of the fund's net income. " Investors can have two choices when they get income: cash, or entrust fund companies to convert dividends into fund shares for reinvestment.