What does the fund rely on for profit?

Fund is a financial management method with low investment threshold and relatively moderate risk. Many investors can understand the profit model of wealth management products such as deposits, bonds and stocks, but they don't know much about what funds rely on for profit. Let's take a look at the profit model of the fund.

First, what does the fund rely on for profit?

Investment fund products, in fact, is to give their own investment funds to professional fund managers to manage and operate. Fund managers (fund managers) will invest the funds raised by funds, such as buying bonds and stocks. The expected return on investment is a part of the expected return of the fund, and the fund company earns profits by collecting management fees.

If the target of fund investment appreciates, the fund is profitable. Fund managers will also adjust their investment strategies according to market conditions. For example, when the expected yield of bonds falls, they may increase their stock positions.

It can be seen that whether the fund is profitable or not has a great relationship with the professional level of the fund manager. Choosing an active fund is, to a great extent, choosing a fund manager.

Second, the performance of fund profitability.

1, the net value of the fund rises and falls.

The profit of the fund is directly reflected in the growth of the net value of the fund, which is updated once a day. If the net value of the fund on that day is higher than the previous trading day, it means that the fund is profitable on that day, and vice versa.

2. Fund dividends

Fund dividend means that the fund distributes part of the expected income to fund investors in cash or by converting it into fund shares. The fund dividend is the net value of the fund, not the extra expected income of investors, but the fund dividend at least shows that the fund is in a profitable state.

The above content about what the fund relies on for profit, I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.