(2) The income of the fund in the current year can only be distributed after making up the losses in previous years;

(3) If the fund investment loses money in the current period, no income distribution will be made;

(4) After the distribution of fund income, the net value of fund share cannot be lower than the face value of the fund;

(5) According to the Interim Measures for the Administration of Securities Investment Funds (hereinafter referred to as "Interim Measures"), the fund allocation shall be made at least once a year in cash; The proportion of fund income distribution shall not be less than 90% of the net income of the fund;

(6) A single fund account may not choose two dividend distribution methods for the same fund at the same time; In the dividend reinvestment part, the reinvestment share is determined based on the net value of the fund share on the equity registration date. Fund income should generally be distributed as follows:

(1) Determine the content of income distribution. Specifically, the object of fund allocation is net income, that is, the balance of fund income after deducting expenses that should be deducted according to relevant regulations. The expenses mentioned here generally include: management fees paid to fund management companies, custody fees paid to custodians, fees paid to certified public accountants and lawyers, and start-up expenses incurred when the fund is established. Generally speaking, the net income of the fund in that year must make up for the loss of the previous year before the income distribution of that year can be carried out; If the fund has a net loss in the current year, it should not distribute the income. In particular, the above revenue and expenditure data must be audited and confirmed by accounting firms and certified public accountants qualified to engage in securities-related business before distribution can be implemented.

(2) Determine the proportion and time of income distribution. Generally speaking, the distribution ratio and time of each fund are different. Under the premise of not violating the relevant national laws and regulations, it is usually stated in advance in the fund contract or the articles of association of the fund company. In terms of distribution ratio, relevant laws in the United States stipulate that funds must distribute 95% of their net income to investors. China's Interim Measures for the Management of Securities Investment Funds stipulates that the proportion of fund income distribution shall not be less than 90% of the fund's net income. In the allocation of time, the fund should allocate income at least once a year.

(3) Determine the object of income distribution. Whether it is a closed-end fund or an open-end fund, the object of income distribution is the investors who hold fund shares on a specific day. Fund management companies usually need to designate the last date of record to get the right of income distribution, and all investors listed in the register of fund holders will have the right to enjoy the income distribution after the transaction ends on this day.

(4) Determine the distribution mode. There are generally three ways: ① cash distribution. This is the most common form of fund income distribution. ② Allocate fund units. That is, the net income to be distributed is converted into new fund units with equal amount and given to investors. This distribution form is similar to the so-called "stock issue", which actually increases the total capital and scale of the fund. ③ No distribution. Instead of sending fund shares and distributing cash, the net income is included in the principal for reinvestment, which is reflected in the increase in the net asset value of fund shares. China's "Interim Measures for the Management of Securities Investment Funds" only allows the use of ①. Taiwan Province Province of China adopts the combination of ① and ③, while the most commonly used methods in the United States are ① and ②. (5) Determine the payment method of income distribution. This is related to how investors get the profits they deserve. Generally speaking, when paying cash, the custodian informs the fund holder to collect it in person or remit it to the holder's bank account; In the case of allocating fund shares, the designated securities company will print the allocated fund shares on the investor's fund share holding certificate.

What needs to be added is that although the fund disperses risks through portfolio investment, it usually enables investors to obtain higher returns (higher than bonds) with lower risks (lower than stocks), but the fund manager does not make any guarantee for the future returns of the fund. In fact, some foundations have very low returns or even losses because of the unsuccessful operation of managers.