Dividend and lease income: First of all, profit share is received from the securities owned by the fund. The fund reflects all of the incomes it makes to the value of the fund’s portfolio.
Buying or selling assets included in the portfolio: Prices of the securities owned by the fund may increase. If the fund sells such revaluated security, it will make a capital gain. The fund reflects such capital gain or loss to the value of the fund’s portfolio.
Increasing market value of securities: If an investment fund does not sell but keeps on holding one of its securities after that security’s price has increased, the value of that fund’s participation shares will increase. The higher the total value of an investment fund, the higher the return of that investment fund.
Therefore, when an investor sells his participation share, he will receive his share of the value increase or decrease that happened in the portfolio of that investment fund.