1, closed-end fund profit distribution
The profit distribution of closed-end funds shall not be less than once a year, and the annual profit distribution ratio of closed-end funds shall not be less than 90% of the realized profit of the fund year. The profits of closed-end funds in the current year must first make up for the losses of the previous year, and then they can be distributed in that year. Closed-end funds generally use cash dividends.
2. Profit distribution of open-end funds
China's open-end funds are required to stipulate in the fund contract the maximum number of fund profit distribution and the minimum proportion of fund profit distribution each year. The profit of the open-end fund in the current year shall make up for the loss of the previous year before it can be distributed in the current year. Dividends of open-end funds can be divided into two types:
Cash dividend: you can get the dividend cash directly, without paying the redemption fee, and it is tax-free. If the investment period is not long and the current market environment is relatively volatile, it is recommended to choose cash dividend.
Dividend reinvestment: reinvesting cash dividends in the fund, commonly known as "accumulated interest", can not only avoid the subscription cost of reinvestment, but also enjoy the next dividend of the fund share obtained by reinvestment. If your investment period is long, I suggest you choose dividend conversion.
3. Profit distribution of money market funds
The Interim Provisions on the Management of Money Market Funds stipulates that for money market funds that quote daily at face value, it can be agreed in the fund contract that Manulife reinvests the expected annualized expected income, and the media should allocate the expected annualized expected income.
The fund shares purchased on the same day enjoy the distribution right of the fund from the next working day, and the fund shares redeemed on the same day do not enjoy the distribution right of the fund from the next working day.