Fund dividend refers to the distribution of part of the fund's income to investors in cash, which is originally a part of the fund unit's net value. People usually say that funds mainly refer to securities investment funds. Fund dividends will not increase users' income, but will return some assets to users in cash by reducing users' net worth.

Although fund dividends cannot increase total assets, if a certain share is accumulated, a relatively stable cash flow can be obtained. If you want to achieve financial freedom, you must have a steady cash inflow every year. Dividend income is a huge passive income.

Fund dividends are a tradition. If the fund company does not pay dividends, it may not be recognized by novice investors. Some new investors think that fund dividends are earned by themselves, and it can be considered that fund companies emphasize dividends to cater to immature investors.

At present, there are two main ways for domestic funds to pay dividends, one is cash dividend, and the other is dividend reinvestment. According to the relevant regulations, when the open-end fund meets the following three conditions, the foundation will pay dividends that year. First, the fund can only be distributed after making up the losses in previous years. Second, after the distribution of fund income, the unit net value is higher than the face value. Third, the fund investment has no net loss in the current period.