After buying the fund, everyone is looking forward to the dividend payment day, which is the so-called dividend payment day. Many people want to know when and how often the funds they buy will pay dividends. Here is a detailed introduction for everyone.

How often does the fund pay dividends?

There is no fixed time for the fund to pay dividends, because whether the fund pays dividends is not fixed. Only funds that meet the dividend conditions can pay dividends. If you don't meet the dividend conditions, you may not pay dividends for one year or even several years. Funds without dividends naturally have no dividend payment date.

Fund dividends, first of all, are registered rights and interests, and then paid. These two times are separate. The dividend payment date is the time when dividends are paid according to date of record. After date of record and ex-dividend day, dividend day finally arrived. On this day, the fund company will uniformly distribute the fund dividend, and whether it chooses cash dividend or reinvestment dividend, it will receive the dividend on the dividend distribution day.

How often does the fund pay dividends?

If the fund dividends meet the following conditions, there is the possibility of dividends, and dividends are not always distributed:

1, the fund can only be distributed after the current year's income makes up for the previous year's losses;

2. After the distribution of fund income, the unit net value cannot be lower than the face value;

3. If the fund investment has a net loss in the current period, it cannot be distributed.

Generally speaking, the fund pays dividends in cash and reinvests the dividends. The cash dividend means that the fund company distributes part of the fund income to fund investors in cash. Dividend reinvestment means that when the fund pays dividends, the fund holders convert the cash from dividends into fund shares according to the net value of the fund on that day and then distribute them to investors. After dividends, the total assets of investors will not change, and their net capital will be lowered accordingly.

Investors who still hold fund shares at the close of the dividend registration date stipulated by the fund company can enjoy dividends. On the contrary, if they don't hold the fund at the close of the fund registration day, or buy the fund after the close of the fund registration day, they can't enjoy dividends.

How often does the fund pay dividends?

Generally speaking, it is once a year, but there are many factors that affect it, so the frequency is not necessarily. Dividend is to distribute the income from investment to investors, and it is also one of the ways for investors to realize the income from fund investment. Therefore, fund dividends are definitely good for investors, so how many times can the fund pay dividends a year?

How often the fund pays dividends depends mainly on the provisions of the fund, because it is different. First of all, closed-end funds should pay dividends at least once a year, and it must be cash dividends. The premise is that the income is not negative, otherwise there is no money to pay dividends. The reason why it must be cash is because the share of closed-end funds cannot be increased during the duration, so dividends cannot be reinvested in the form of dividends, and only cash dividends can be paid. However, if it is an open-end fund, there are no special hard and fast rules on how to pay dividends several times a year and whether to pay dividends or not. Generally, the principle and scheme of dividend distribution are only stipulated in the fund contract and prospectus. Fund managers enjoy greater autonomy and can pay dividends several times a year, some may be several times, and some may not pay dividends at all.

Is the amount of dividends better or less? The more dividends investors get, the more profits they get. It looks good, but it's not. It depends.

First of all, we can look at it from two aspects: there is dividend and there is no dividend. Naturally, the more dividends, the better. At this time, the fund pays dividends, which means that the fund may have more profits. Otherwise, where will the money give you dividends? Therefore, funds with less dividends may be due to less profits and no money to pay dividends. If you have to choose, no matter who you are, you will choose a more profitable one. Secondly, it depends on the trend of the fund, and the meaning of the number of red times produced by different trends may be completely different. If the fund is in a downward trend, the more dividends, the better. This is to reduce the losses when the fund is in a downward trend, but if the fund is in an upward trend, the dividends will be less.

Is the amount of dividends better or less?

There will certainly be people wondering why the fund fell and why it didn't sell. Wouldn't it be nice to reinvest when the dividend goes up? That's true, but it's difficult for us to judge whether the fund was up or down at that time. Open-end funds generally default to cash dividends, but you can choose two ways to pay dividends yourself, so you can choose to reinvest with dividends. If you plan to hold a fund for a long time and the income is not bad, then the way of cash dividend is not that the more dividends the better, and the more dividends, the lower the income will be like the upward trend. But if you reinvest with dividends, your fund share will increase. At this time, the number of dividends shows that your fund share is increasing, which can bring more benefits.