For example, when the net fund value is 1.000 4 yuan, investors buy1.000 funds. When the net fund value rises to 1.5 yuan, investors' total assets are 1.500 yuan. At this time, the fund pays a cash dividend of 0.05 yuan each, and investors get a cash dividend 50 yuan; After dividends, the net value of the fund decreased to 1.45 yuan, and the total assets of investors remained at 1.500 yuan, of which the fund assets were 1.450 yuan, and 50 yuan received cash dividends.
After the fund pays dividends, the net value of the fund will fall, and the specific extent of the decline is determined by the dividends of each fund share. However, the accumulated net value of the fund will not be reduced because of the fund dividends, and the standard for measuring the investment performance of the fund is the accumulated net value of the fund. This shows that fund dividends are only one of the means for fund managers to adjust their positions and lighten their positions. Dividend funds are also investors' own book assets and will not harm investors' interests.
Benefits of fund dividends:
Investors don't need to sell their fund shares to get income. If the net value of the fund keeps steady growth after the fund pays dividends, and it can pay dividends stably for a long time, then the income obtained by investors before the fund pays dividends, and investors can make money through the fund dividends thereafter.
Disadvantages of fund dividends:
Fund dividends show that this fund is profitable, with high return on investment, and the potential for future profits after dividends is greater than that of other funds. Coupled with the decline in the net value of funds after dividends, it is possible to attract new investors, attract more investment funds and increase basic funds.
Fund dividend method:
1, cash dividend. Cash dividend refers to the payment of funds obtained from dividends to the citizens in cash, so that the citizens can take out part of the fund income without receiving redemption fees.
2. Dividend reinvestment. Dividend reinvestment refers to the direct use of dividend income to purchase funds, and the purchase of dividend funds according to the newly added net value of funds, so as to increase the fund share held by the basic people.
Fund dividend principle:
1. The current income of the fund can only be distributed after making up the previous losses;
2. After the distribution of fund income, the net value of each fund share cannot be lower than the face value;
3. If the fund loses money in the current period, no income distribution will be made.
The dividend period of the Fund is not fixed, and the specific dividend terms will be stated in the fund contract or prospectus. For example, how many times the fund pays dividends at least once a year; Or pay dividends when the distributable income of the fund reaches a certain standard.