How does the fund generate earnings for investment funds? - IntrebBT | Transilvania Bank

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How do investment funds generate profit?

Investment funds generate gains from the investments they make. For example, funds that invest in bonds or other fixed-income instruments collect interest that leads to an increase in the value of the fund unit. On the other hand, the gains generated by equity funds are due to the increase in the stock price or the dividends paid and collected by the fund.

Last update

2026-06-12

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Investment fund Yield