Depending on the managed fund or ETF you hold and what you’re entitled to - you may receive income in the form of a distribution.

Re-invested distribution 
The income distribution automatically gets reinvested into more units of the same fund. For investors looking to maximise their returns over the long term, there can be many benefits to re-investing distributions. Reinvesting your distributions back into the same fund will increase the number of units you hold, which over the long term can compound both capital growth and income returns. 
Cash distribution to your Vanguard Cash Account 
You can have distributions transferred into your Vanguard Cash Account to use to invest in other products. Keep in mind, the Vanguard Cash Account is not an interest-bearing account, so you won’t earn any interest from money left in this account.

How to change your investment income distribution - ETFs and managed funds