Closed-end stock fund means that the fund shares of stock funds are not publicly issued or transferred within a certain fixed period, and the fund management company will not buy back all their shares before the expiration. Dividend refers to the behavior of stock fund management companies to distribute the investment income of funds to fund share holders according to the provisions of the fund agreement. So, what are the dividend rules of closed-end stock funds?

First of all, the dividends of closed-end stock funds are clearly defined. According to the Securities Investment Fund Law and Fund Contract, the principle of income distribution of closed-end stock funds is mainly cash distribution. Closed-end stock funds will generally distribute profits or income to fund share holders on schedule according to the "profit distribution ratio" after purchasing investment targets such as stocks with their own funds. Therefore, investors can get dividend income in time according to the fund agreement when holding closed-end stock funds.

Secondly, closed-end equity funds have a high dividend ratio. Because the closed-end stock fund decided the total amount of issuance at the beginning of its establishment, it will not be publicly issued for a certain period of time, so its fund share is limited. And because the fund shares cannot be redeemed or transferred under normal circumstances, the distribution of each dividend income will basically be implemented in the hands of the fund share holders. Therefore, the dividend ratio of closed-end stock funds is often higher.

However, the dividends of closed-end stock funds have certain risks. On the one hand, the investment target of closed-end stock funds is mainly stocks, and such funds usually adopt active investment strategies. Therefore, the investment income of the fund also has certain volatility. If the market trend is not good, the investment income of the fund will decrease, and the dividend income will also decrease accordingly. On the other hand, the operation mode of closed-end stock funds is different from other types of funds, the fund shares cannot be transferred, and the liquidity is poor, so investors need to bear higher risks.

To sum up, closed-end equity funds have a high dividend ratio, but there are also high investment risks. When investing, investors should choose a formal and legal fund management company, carefully understand the performance, fund investment strategy, dividend rules and other aspects of the fund management company, and choose a suitable closed-end stock fund according to their risk tolerance and risk preference.