1. Dividends are a stable way of income for investors.
Fund dividend is a kind of behavior that fund companies distribute to fund investors on a regular basis after obtaining income through investment, transaction and income distribution of fund assets.
If a fund's economy is operating normally, the return on assets of its portfolio should be stable. Then, the significance of fund dividend is that it can not only bring stable income to investors, but also protect investors' principal. Because the fund dividend will not include the principal of the fund, the investor's principal is guaranteed and will not suffer losses because of the dividend.
2. Dividends can make fund investors treat income more rationally.
In fund investment, it is the original intention of many people to strive for the maximization of income, but many times investors will take out part of the income prematurely because of greed, thus affecting the future fund income. The existence of fund dividends can make fund investors treat asset returns and investment risks more rationally and avoid investment risks brought by premature withdrawal of returns.
This is because for investors who hold funds for a long time, dividends, like cash flow, can replace part of the principal or continue to invest, thus ensuring the stability of the overall income. At the same time, the period and amount of dividends are also determined by the fund company and investors when signing the investment agreement, which can not only ensure the safety of fund assets, but also enable investors to make more stable investment decisions.
3. Dividends can promote market activities.
The activity of the fund market also has a great influence on the whole securities market and capital market, and fund dividends can play a certain role in the activity of the market. When the fund pays dividends in a certain period, investors often receive a sum of cash, which will promote the flow of funds and the activity of transactions, thus improving the market activity. When the market activity increases, it will promote the market to become clearer, thus bringing more opportunities and benefits.
Generally speaking, although the fund dividend is not the only important factor for investment, it is one of the important considerations for investors. Dividends can bring stable returns to investors, make them treat asset returns and investment risks more rationally, and also promote market activity and bring more opportunities and benefits.