Why is the fund not profitable on weekends?
The fund is profitable on weekends, but most of the fund's earnings on weekends are withdrawn on the first day after holidays, and the earnings on the first day after holidays will be superimposed, so many investors mistakenly think that the fund is unprofitable on weekends.
So why do foundations also generate income on weekends? Different from stocks and stock funds, there are many types of funds, and the specific investment targets are different. The income generated by different investment targets will be different, specifically:
1 money fund: the income of the money fund mainly comes from the income of bank deposits, which has little to do with the changes in the A-share market, so even on non-trading days, the money fund will generate income.
2 Bond funds: Bond funds invest in bonds, and the income comes from coupon and transaction income. During holidays, bonds cannot be traded, so there is no transaction-level income, but bonds still generate interest income every day, which will be reflected in the change of fund net value on the first trading day after the holiday.
3. Hybrid and equity funds: These funds are more focused on stocks, so when the stock market is closed, there will be no dividend, dividend and income difference between buying and selling stocks. However, it should be noted that the investment targets in stock-based and hybrid funds are not all stocks, and some cash positions will be reserved, which means that there will be a certain proportion of bonds or deposits, and this part of investment targets will still have income on holidays.
To sum up, the fund doesn't have no income over the weekend, but it doesn't show income over the weekend, and it will be superimposed with the income generated on the first trading day after the holiday, so investors can't notice the income generated by the fund holiday.